Jefferies has reduced its price target for Eversource Energy (NYSE:ES) to $57.00 from $60.00 and reaffirmed an Underperform rating on the utility’s shares. That revised target sits well below the company’s recent trading level of $69.58 and is the lowest among the analyst price targets cited, which range from $60 to $87.
The investment bank pointed to an expectation that 2026 will remain "another complicated year" for Eversource, singling out two near-term pressures: the Aquarion Water Company sale returning to consideration by the Connecticut Public Utilities Regulatory Authority (PURA) and ongoing requirements to repair the company’s balance sheet.
Jefferies’ note referenced balance sheet metrics that underscore the company’s financial constraints. InvestingPro data cited in the research shows a debt-to-equity ratio of 1.86 and a current ratio of 0.71, figures that indicate a relatively high degree of leverage and that short-term liabilities exceed liquid assets.
While the firm acknowledged improvements in the regulatory outlook in Connecticut, it continued to flag affordability issues tied to major rate cases and noted that electricity rates in the state remain among the five highest in the United States.
Jefferies addressed the argument from more optimistic investors that the market already discounts many of these challenges. The firm countered that Eversource faces below-average growth versus peers, weaker credit metrics, and limited upside from capital spending plans, all of which support its cautious position.
The note also emphasized that Eversource’s year-over-year growth in fiscal 2026 is expected to be below the sector average, reinforcing Jefferies’ stance. InvestingPro’s Fair Value assessment was cited as indicating that the stock is currently overvalued. The company is scheduled to report earnings on February 12, which the note stated is 17 days away.
Company announcements and financial guidance
Eversource declared a quarterly dividend of $0.7525 per share, set to be paid on December 31, 2025, to shareholders of record as of December 15, 2025. The company reiterated its full-year 2025 non-GAAP earnings guidance of $4.72 to $4.80 per share, and maintained a projected compound annual earnings growth rate of 5% to 7% from a 2024 base of $4.57 per share.
Separately, Connecticut regulators denied the proposed $1.6 billion sale of Aquarion Water Company. That regulatory decision prompted the company to reaffirm its financial outlook, though the denial has influenced analyst reactions and planning assumptions.
Analyst moves after the Aquarion sale denial
Following the Connecticut decision, Jefferies reiterated its Underperform rating and maintained an earlier $60.00 price target while estimating approximately a 4% impact to the company’s plan and noting increased equity needs as a result. Other brokerages also adjusted their views: Scotiabank lowered its price target from $64.00 to $63.00 but remained at a Sector Underperform rating, and Mizuho downgraded Eversource from Outperform to Neutral and cut its target from $81.00 to $68.00, citing ongoing regulatory concerns in Connecticut.
Collectively, these moves reflect an analyst community recalibrating expectations in the face of regulatory hurdles and balance sheet considerations.
Investor resources
The note referenced additional research available through InvestingPro, including a Fair Value assessment and a Pro Research Report that provides deeper analysis and supplemental ProTips on Eversource’s financial condition.
Investors evaluating the company should consider the combination of regulatory uncertainty in Connecticut, the implications of the Aquarion sale denial, and the company’s balance sheet metrics when assessing risk and valuation ahead of the upcoming earnings report.