UBS Trims Eversource (ES) Target but Sees Constructive Regulatory Progress

Eversource Energy (NYSE:ES) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.

On December 17, UBS lowered its price target on Eversource Energy (NYSE:ES) to $73 from $78 and kept a Neutral rating on the shares. Analyst William Appicelli pointed to a recent filing by Eversource Energy’s NStar Gas, which reached a rate settlement with the Massachusetts Attorney General, the only party involved in the case. If approved, the agreement would allow the company to avoid a formal rate case. It would also clear one of several regulatory issues still pending, which UBS views as a constructive step.

Eversource Energy (NYSE:ES) posted strong gains in 2025, rising more than 18%. That momentum stalled in November, when shares dropped nearly 9% after Connecticut regulators rejected the company’s plan to sell its water utility business. The decision slowed Eversource’s efforts to streamline operations and lower debt.

Eversource had agreed in January 2025 to sell Aquarion in a $2.4 billion deal. The company originally acquired the water utility in 2017 for about $1.7 billion. Regulators ultimately determined that the proposed sale did not meet managerial suitability and responsibility standards in a way that aligned with the public interest. The deal did meet financial and technological requirements and was expected to maintain safe and reliable service, but that was not enough to secure approval.

Management said the state showed interest in expanding a non-profit ownership model. When regulators examined that option, the Connecticut Public Utilities Regulatory Authority found it difficult to move away from the investor-owned structure. A 2024 special act had directed the state to assess whether a non-profit model could better serve water customers.

Eversource Energy (NYSE:ES) is a utility holding company focused on energy delivery through its regulated utility subsidiaries.

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