Eversource Energy (ES): Assessing Valuation After Aquarion Sale Rejection and Analyst Upgrade

The Connecticut Public Utilities Regulatory Authority recently rejected Eversource Energy’s (NYSE:ES) proposed sale of Aquarion Water, adding fresh uncertainty to its financial plans. At the same time, a brokerage upgrade has sparked new interest in the stock.

See our latest analysis for Eversource Energy.

The regulatory setback in Connecticut and renewed optimism from Janney’s upgrade have stirred noticeable market action for Eversource. The share price has bounced back over 3% in the past 90 days, even after a sharp dip this month. The total shareholder return for the past year now sits at 8.3%. While momentum has picked up lately as the market digests both risk and upside, ongoing uncertainties around major projects continue to keep sentiment in flux.

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With analyst upgrades pushing expectations higher and regulatory setbacks highlighting persistent risks, is Eversource trading below its intrinsic value or is the market already factoring in future growth? Could this be a buying opportunity, or is everything priced in?

Most Popular Narrative: 11.8% Undervalued

With the current fair value in the narrative set at $75.60 and Eversource’s recent close at $66.70, the narrative positions the stock as having attractive upside. This view is supported by forward-looking earnings and margin expectations that distinguish it from recent market prices.

“Positive legislative and regulatory developments, such as the passage of Senate Bill 4 in Connecticut and constructive rate case outcomes in both New Hampshire and Massachusetts, are enhancing visibility for cost recovery and capital deployment. These factors support long-term earnings and cash flow stability.”

Read the complete narrative.

Curious what powers this bullish outlook? The most popular narrative hinges on ambitious profitability gains and a future performance multiple typically associated with strong industry leaders. Want to see which aggressive projections justify this valuation boost? Uncover the decisive assumptions that could redefine the story for Eversource.

Result: Fair Value of $75.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, significant regulatory shifts in Connecticut or delays in key asset sales could quickly reverse optimism around Eversource’s steady growth outlook.

Find out about the key risks to this Eversource Energy narrative.

Build Your Own Eversource Energy Narrative

If you have a different take on Eversource or would rather base your perspective on your own findings, you can quickly build your own narrative in just a few minutes. Do it your way.

A great starting point for your Eversource Energy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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