CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $7 to $80, 17.3x our next-12-month EPS estimate of $4.61, above ES's five-year average of 16.3x but below the regulated utility peer average of 18.5x. With key strategic initiatives including the Aquarion sale and Revolution Wind exit nearing completion, we believe ES is well positioned to deliver on its pure-play regulated utility strategy and close the valuation gap to peers. ES revised its 2026 EPS guidance to $4.57-$4.72 (from $4.80-$4.95) primarily due to the FERC transmission ROE reduction, but reaffirmed its long-term growth target and expects an inflection to stronger growth by 2028. We view the near-term headwinds as largely transitory, with multiple regulatory and strategic catalysts positioning ES for improved performance. We lower our 2026 EPS view by $0.33 to $4.66 and our 2027 EPS view by $0.32 to $4.96. On a CAGR basis from 2025-2028, we expect EPS growth of 3.4% to lag the peer average of 7.7%, while dividend growth of 5.3% is above the peer average of 4.8%.