Eversource Energy Positioned for Growth Amid Regulatory Changes

Author: Evelyn Baker Updated: 10-21-2025 02:16 PM

Eversource Energy's Growth Potential

Eversource Energy (NYSE: ES), a prominent player in the utility sector of the Northeastern U.S., finds itself at a pivotal moment as regulations shift in its favor. Recent changes in Connecticut’s regulatory environment are expected to bolster the company's growth trajectory.

Positive Changes in Regulatory Framework

The state's recent enactment of Senate Bill 4 marks a significant step forward, expanding the Public Utilities Regulatory Authority (PURA) to include five commissioners. This legislative update also permits utility companies to manage storm costs through securitization, which may enhance financial stability for Eversource Energy.

Leadership Enhancements

The resignation of former PURA Chair Marissa Gillett, combined with the recent nomination of four new commissioners with technical expertise, suggests a move towards a more stable and predictable regulatory landscape. These changes are crucial in paving the way for improved operations and better regulatory decisions in the future.

Near-Term Opportunities

Analysts from Bank of America point out that Eversource Energy's immediate future holds significant opportunities, with key developments like the proposed acquisition of Aquarion and the upcoming final decision on Yankee Gas. Even if the Aquarion acquisition falters, the firm anticipates that Eversource will proceed to reevaluate that segment, showcasing the management's commitment to optimizing the company’s portfolio.

Financial Projections on the Upswing

In a recent update, Bank of America revised its earnings projections for Eversource Energy upwards. The analyst team forecasts earnings per share will rise to $5.05 for 2026, enhancing previous estimates. Moreover, projections for 2027 and 2028 have also seen increases to $5.40 and $5.70, respectively, indicating confidence in the company's recovery and growth.

Projected Growth Rate

The firm maintains its forecast of a 5-7% compound annual growth rate (CAGR) for Eversource's earnings through 2029. This projection aligns with anticipated enhancements in financial performance and a more balanced funding approach, which should further improve the company’s earnings visibility.

Valuation Insights

Bank of America has established a price target of $85 for Eversource Energy based on a sum-of-the-parts (SOTP) valuation approach. The analysis uses 2027 average price-to-earnings (P/E) ratios of 16.4x for the electric division and 16.1x for natural gas, adjusted incrementally to reflect sector growth expectations.

Current Market Performance

As of the latest updates, shares of Eversource Energy have shown a slight increase of 0.55%, trading at around $73.25, reflecting growing investor confidence as regulatory conditions become more favorable.

Frequently Asked Questions

What is the current outlook for Eversource Energy?

The outlook for Eversource Energy is positive, with improvements in regulatory conditions and upward revisions in earnings forecasts by analysts.

How has recent legislation affected Eversource?

Recent legislation, including Senate Bill 4, has enabled better cost management and improved stability within the regulatory environment for Eversource.

What are the key financial projections for Eversource?

Earnings estimates for 2026 have been raised to $5.05 per share, indicating strong potential for growth in the coming years.

How does Eversource Energy plan to streamline operations?

Eversource is exploring options to market segments like Aquarion, emphasizing its commitment to operational efficiency.

What is Eversource's current stock performance?

Currently, Eversource's stock has witnessed a slight uptick, reflecting positive sentiment among investors as regulatory changes take effect.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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