Analyst Neil Kalton from Wells Fargo maintained a Buy rating on Public Service Enterprise (PEG – Research Report) and decreased the price target to $95.00 from $100.00.
Neil Kalton has given his Buy rating due to a combination of factors including Public Service Enterprise Group’s (PEG) strong earnings per share (EPS) guidance and a robust five-year growth outlook. The company has set a 2025 EPS guidance range of $3.94 to $4.06, with a midpoint that is approximately 9% higher than the previous year’s adjusted EPS. This indicates a solid growth trajectory with a reaffirmed five-year EPS compound annual growth rate (CAGR) of 5-7%, suggesting a positive earnings outlook.
Additionally, PEG has updated its capital expenditure plan, increasing it by around 15% for the 2025-2029 period compared to the previous guidance. This reflects a commitment to infrastructure investments and potential growth opportunities. Although there are no new developments on the nuclear and data center strategy, the valuation analysis assumes a significant portion of PEG’s nuclear output will be contracted at premium prices. These strategic initiatives and financial projections support the Buy rating, as they indicate potential for sustained growth and value creation.
In another report released on February 20, Morgan Stanley also maintained a Buy rating on the stock with a $96.00 price target.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PEG in relation to earlier this year.