Eversource Energy (ES) Dealt a Blow by Connecticut Regulators

ES +1.57%

Eversource Energy (NYSE:ES) is included among the 14 Best Utility Dividend Stocks to Buy Now.

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Eversource Energy (NYSE:ES) operates New England’s largest energy delivery system and serves customers in Connecticut, Massachusetts, and New Hampshire.

Eversource Energy (NYSE:ES) slumped heavily this week after Connecticut regulators stopped the company from selling its water utility Aquarion for $2.4 billion. According to the regulators, the deal fails managerial suitability and responsibility requirements, despite meeting standards in a number of areas. The decision marks a major blow for Eversource, which is currently struggling with organizational sprawl and high long-term debt.

Following the development, Scotiabank lowered its price target on Eversource Energy (NYSE:ES) from $64 to $63, while keeping an ‘Underperform’ rating on its shares, as reported by The Fly. According to the analyst, things can get worse before they start to get better for the utility, despite its cheap valuation. Moreover, Eversource remains Scotiabank’s least favorite regulated utility stock.

However, despite the setback, Eversource Energy (NYSE:ES) reaffirmed its FY 2025 adjusted EPS guidance of $4.72 – $4.80. The company also stays committed to its expected compound annual EPS growth rate of 5% to 7%, from a 2024 base of $4.57 per share.

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Disclosure: None.