NiSource Set For Outperformance But CenterPoint Energy Faces Regulatory Hurdles, Says BofA Analyst

BofA Securities analyst Ross Fowler reinstated the Buy rating at NiSource Inc NI with a price target of $37 and the Neutral rating at CenterPoint Energy, Inc CNP with a price target of $29.

NI: The analyst writes that NiSource has demonstrated strong regulatory and financial execution over the past 24 months and is gaining a reputation for consistency and financial prudence.

The new senior management team has proven effective, delivering results at the high end of expectations in various conditions, adds the analyst.

Also Read: Pete Buttigieg: ‘Hurricane Beryl Is Proving To Be A Highly Destructive Storm’

Fowler expects capital upside from data centers, anticipated updates, and multiple expansions from ongoing rate case resolutions, along with a robust balance sheet to drive continued outperformance.

The analyst forecasts EPS of $1.72, $1.85, and $2.01 for FY24, FY25, and FY26 vs. consensus of $1.73, $1.85, and $1.98, respectively.

CNP: The analyst says that CenterPoint is navigating political and regulatory challenges following its response to Hurricane Beryl.

Read: Hurricane Beryl Expected To Weaken To Tropical Storm As It Hits Texas

While the direct financial impact is likely manageable due to Texas storm recovery mechanisms, ongoing investigations and a pending general rate case suggest near-term multiple recovery unlikely, adds the analyst.

Fowler projects EPS of $1.64, $1.74, and $1.85 for FY24, FY25, and FY26, compared to consensus of $1.62, $1.73, and $1.86, respectively.

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