BMO Capital Markets has adjusted its outlook for Public Service Enterprise Group Inc. (NYSE: NYSE:PEG), increasing the price target to $89.00 from $86.00.
The firm maintained a Market Perform rating for the utility company's stock.
Last week, the Board of Public Utilities (BPU) gave its nod to PSEG's settlement in the gas/electric rate case. The approval granted PSEG a net $341 million increase in electric rates and a net $164 million for gas.
This decision was received favorably by BMO Capital, as it solidifies PSEG's revenue streams. The final order also retains a 9.6% return on equity (ROE) and introduces a higher 55% equity ratio.
The analyst at BMO Capital has updated the earnings per share (EPS) estimates for PSEG for the years 2025 to 2028 to reflect the terms of the order.
The revisions also take into account conservative capacity price assumptions and an escalated production tax credit ( PTC (NASDAQ:PTC)) floor for unhedged production.
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