Eversource Energy (ES) Price Target Reduced by BMO Capital on ROE Ruling

Eversource Energy (NYSE:ES) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks.

Eversource Energy (ES) Price Target Reduced by BMO Capital on ROE Ruling

On March 23, BMO Capital lowered its price recommendation on Eversource Energy (NYSE:ES) to $75 from $79. It reiterated a Market Perform rating on the shares. The firm pointed to a recent decision by FERC that addressed long-standing issues around the base ROE for the New England Transmission Owners. The order found that prior rates were unjust and unreasonable and set a new base ROE at 9.57%, the analyst said.

During its Q4 2025 earnings call, Eversource projected 2026 earnings per share in the range of $4.80 to $4.95. Management indicated that growth would be more moderate. Timing around regulatory decisions, along with pressure tied to Aquarion and storm cost recovery, is expected to weigh on results. CFO John Moreira said growth in 2026 will be limited largely due to these regulatory timing factors.

Looking ahead, the company expects earnings growth to pick up in 2027 and 2028. That outlook is tied to improved regulatory outcomes, recovery of storm-related costs, and adjustments in distribution rates. Eversource outlined a five-year EPS growth target of 5% to 7%, based on 2025 non-GAAP recurring EPS of $4.76. The company is aiming to reach the upper end of that range by 2028. It also highlighted a $26.5 billion capital plan focused on electric and natural gas distribution, transmission, and technology investments. The plan does not include Aquarion Water, which would add another $1.3 billion if included.

Eversource Energy (NYSE:ES) operates as a utility holding company focused on energy delivery through its subsidiaries. Its business is organized into Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments.

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