Credit Suisse upgrades NiSource to Outperform with $27 price target

As previously reported, Credit Suisse analyst Nicholas Campanella upgraded NiSource to Outperform from Neutral with a $27 price target post the AD which he sees as a de-risking catalyst for shares, removing uncertainties surrounding the strategic review, with a clearer path on asset sale and ultimately long-term EPS growth rate execution. While NiSource’s EPS and RAB growth rate are slightly lower than the prior plan, Campanella views the renewed EPS growth rate, 8%-10% RAB growth, pair with projected BBB+ credit rating with 14%-16% FFO/debt, as a reasonable proposal to get NiSource back to a premium utility multiple over time.