Price target change and rating
BofA Securities has cut its price target on Public Service Enterprise Group Inc. (PEG) to $84.00 from $95.00 while leaving its Buy rating intact. The firm said the revision reflects adjustments to valuation premiums tied to the company’s regulated businesses.
Current market picture
PSEG shares are trading at $78.51, near a 52-week low of $74.67, and the stock carries a price-to-earnings ratio of 18.8.
Analyst estimates and near-term earnings outlook
BofA analyst Julien Dumoulin-Smith expects PSEG to report fourth-quarter 2025 earnings per share of $0.72. That projection aligns with consensus estimates but would be below the $0.84 EPS the company reported in the fourth quarter of 2024.
The bank also trimmed its full-year 2025 EPS forecast modestly to $4.05 from $4.06. That revised figure remains slightly above the consensus estimate of $4.04 and is higher than the prior year’s EPS of $3.68.
Rationale for the price target reduction
BofA said the new price target follows its decision to remove the electric premium and to lower the gas premium to 10%. The firm attributed those moves to the "regulatory overhang presented by the recent EOs." BofA reiterated its Buy rating on the stock despite the target cut.
Other analyst actions and company developments
Outside of BofA, analysts and research firms have taken a range of positions on PSEG. Wells Fargo upgraded the stock from Equal Weight to Overweight and set a $92.00 price target. Jefferies upgraded PSEG to Buy and adjusted its target to $90.00. By contrast, BMO Capital lowered its price target to $83.00 while keeping a Market Perform rating.
According to InvestingPro, analysts’ price targets for PSEG span from $73 to $101, and the firm is expected to remain profitable this year based on available estimates.
Recent operating and leadership items
PSEG reported third-quarter 2025 earnings per share of $1.13, exceeding BMO Capital’s estimate of $1.01 and the consensus estimate of $1.02. The company has also seen board and management changes: Geisha J. Williams will join PSEG’s Board of Directors, and Scott Jennings has been named president and chief operating officer of PSEG Long Island following a contract extension with the Long Island Power Authority.
Market context and outlook
The mix of a lower price target from one prominent bank, upgrades from other firms, recent quarterly results that beat expectations, and leadership changes together create a period of active analyst attention and strategic transition for PSEG. The range of analyst price targets and differing ratings underscore divergent views of the company’s near-term outlook amid regulatory developments affecting valuation premiums.