BofA Revises Eversource (ES) Estimates Lower, Keeps Buy Rating

Eversource Energy (NYSE:ES) is included among the 14 Cheap DRIP Stocks to Buy Now.

BofA Revises Eversource (ES) Estimates Lower, Keeps Buy Rating

On March 27, BofA analyst Ross Fowler lowered the firm’s price recommendation on Eversource Energy (NYSE:ES) to $73 from $82. It maintained a Buy rating on the shares. The firm said it revised its FY26–28 EPS estimates to reflect a full 100 basis point base ROE drag in 2026 tied to Opinion No. 594. It noted that the ruling resets the New England Transmission Owners’ base ROE to 9.57% and introduces two refund obligations.

During the Q4 2025 earnings call, the company said it expects 2026 earnings per share to come in between $4.80 and $4.95. It indicated that earnings growth will be more moderate, pointing to the timing of key regulatory decisions, along with pressure related to Aquarion and storm cost recovery. John Moreira, Executive VP, CFO & Treasurer, said the slower growth outlook is largely tied to when those regulatory outcomes are expected to come through.

Looking further out, the company pointed to a stronger pickup in earnings growth in 2027 and 2028. It expects this to be supported by improved regulatory outcomes, recovery of storm-related costs, and adjustments to distribution rates. It also outlined a five-year long-term EPS growth target of 5% to 7%, based on 2025 non-GAAP recurring EPS of $4.76 per share, and said it expects to reach the upper end of that range by 2028. The company highlighted a $26.5 billion capital plan focused on investments in electric and natural gas distribution, transmission, and technology. It added that including Aquarion Water would raise the total by another $1.3 billion.

Eversource Energy (NYSE:ES) operates as a utility holding company, delivering energy through its subsidiaries. Its segments include Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution.

While we acknowledge the risk and potential of ES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ES and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Diversified Dividend Stocks to Buy Right Now and 14 Safest Stocks with Highest Dividends

Disclosure: None. Follow Insider Monkey on Google News.