Investing.com – BofA Securities lowered its price target on Eversource Energy (NYSE:ES) to $72 from $73 while maintaining a Buy rating on the stock. Analyst Ross Fowler cited mark-to-market peer multiples in the adjustment. The stock currently trades at $67.05, giving the utility a market capitalization of $25.19 billion.
The firm estimates first-quarter 2026 adjusted earnings per share of $1.58, up from $1.50 in the first quarter of 2025 and modestly below the $1.60 street consensus. The company trades at a P/E ratio of 14.7 with a notably low PEG ratio of 0.15, suggesting attractive valuation relative to growth prospects. The year-over-year gain is led by Natural Gas Distribution, which added $0.15, reflecting the first full quarter of Yankee Gas rates, continued EGMA rate base roll-in, and NSTAR Gas PBR step-up.
Electric Transmission and Electric Distribution each contributed $0.04 to the quarterly gain. The principal offset is Parent & Other, which subtracted $0.15, driven by higher interest expense on the new hybrid issuance and a modestly elevated effective tax rate.
BofA revised its fiscal 2026-2028 earnings estimates to reflect a full 100 basis point return on equity drag from Opinion 594 in 2026, partially offset by the assumption of a successful Section 205 filing anchoring a 9.85% base ROE from 2027 onward. The firm’s fiscal 2026 earnings estimate moved to $4.70, the high end of the $4.57-$4.72 guidance range, with fiscal 2027-2028 at $4.94 and $5.24.
The new price target of $72 is based on mark-to-market peer multiples of 16.2 times for electric, 16.6 times for gas, and 17.1 times for water, implying a 12.4% total potential shareholder return. The company offers a dividend yield of 4.71% and has raised its dividend for 27 consecutive years, according to InvestingPro analysis, which currently shows the stock as overvalued relative to its Fair Value. Investors seeking deeper insights can access one of 8+ additional ProTips and comprehensive Pro Research Reports available for ES and 1,400+ other US equities.
In other recent news, Eversource Energy reported strong financial results for the fourth quarter of 2025, with non-GAAP earnings rising to $1.12 per share from $1.01 per share in the same period of 2024. The company also saw full-year earnings increase to $4.76 per share, up 4% from $4.57 in 2024. Argus reiterated its Buy rating for Eversource Energy, highlighting a 4.7% dividend increase and the company’s yield trending above its peers. Meanwhile, several financial firms have adjusted their price targets for Eversource Energy. UBS lowered its target to $74, citing the Federal Energy Regulatory Commission’s (FERC) reduction in return on equity (ROE) impacting earnings. BofA Securities also reduced its target to $73 due to concerns over the NETO base ROE reset to 9.57% and related refund obligations. Mizuho cut its target to $70, noting regulatory challenges, while BMO Capital adjusted its target to $75 following FERC’s ruling on ROE adjustments. Additionally, Connecticut’s Public Utility Regulatory Authority approved the transfer of Aquarion to the Regional Water Authority, with proceeds of approximately $2.4 billion, including $800 million to pay down debt.
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