BMO Cuts NiSource Target to $45, Keeps Outperform Rating
BMO Capital trimmed its NiSource price target amid Indiana regulatory pressure, but the utility reaffirmed its 2026 earnings guidance.
BMO Capital Markets reduced its price target on NiSource Inc. (NI) from $49 to $45 on Monday, pointing to heightened regulatory scrutiny in Indiana as the primary driver of the revision. Despite the cut, the firm held its Outperform rating on the regulated utility, signaling continued confidence in the stock's long-term trajectory.
NiSource moved to reassure investors by reaffirming its 2026 adjusted earnings-per-share guidance alongside its long-term growth targets. The company cited a substantial capital investment plan as a key pillar underpinning those projections, though specific dollar figures were not disclosed in the guidance update.
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Broad analyst sentiment toward NiSource remains constructive. The consensus price target across Wall Street sits well above the stock's current market price, suggesting the investment community views the shares as undervalued relative to their assessed fair value even after BMO's downward revision.
The Indiana regulatory environment has emerged as a focal point for utility investors, as state-level decisions on rate cases and infrastructure spending can materially affect earnings visibility for companies like NiSource that rely heavily on regulated returns. BMO's move reflects that risk without abandoning the bull case.
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