Eversource Energy (D/B/A)NYSE: ES
Utilities · Electric Utilities
$69.46
+0.59%
Vol: 2.1M
Research Digest
Thursday, June 18, 2026
Eversource faces fresh regulatory pressure as Connecticut's AG petitions FERC to scrap its 0.5% ROE adder and Argus downgrades the stock to Hold.
On June 16, 2026, Connecticut's attorney general asked federal regulators to eliminate a 0.5% return-on-equity adder that benefits Eversource, adding to a regulatory overhang. The pressure follows a FERC ruling that set a 9.57% base ROE for New England transmission owners; Eversource, Avangrid and others are appealing for a higher 11.39% rate, with the lower ROE expected to cut Eversource's after-tax earnings by roughly $70 million in 2026. Citing the FERC decision, an Argus analyst downgraded Eversource to Hold from Buy. The stock trades around $69-$70, with 2026 EPS guidance of $4.80-$4.95 and a $26.5 billion 2026-2030 capital plan. The news matters because transmission ROE directly drives Eversource's regulated earnings power. The key risk is that further unfavorable regulatory outcomes erode the earnings base underpinning its growth and dividend.
Previous Market Intelligence
13 daysJun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14Eversource drew split analyst actions on June 12 as Bank of America initiated/affirmed a Buy while Argus downgraded the utility to Hold from Buy.Mixed▶
On June 12, 2026, Eversource Energy (ES) received diverging analyst calls: Bank of America Securities issued a Buy rating while Argus downgraded the stock to Hold from Buy, leaving the consensus at "Hold" across 16 analysts with an average price target of roughly $72.08 (about 5% upside from ~$68.43). The split reflects ongoing tension between the company's Q1 2026 earnings strength (EPS of $1.73, beating the $1.61 estimate by 7.4%) and regulatory headwinds, notably a recent FERC ruling that lowered allowed returns and pressured price targets. Eversource continues heavy infrastructure investment while offering a 4.44% dividend yield. The bear case centers on the FERC-driven cut to allowed returns and broader regulatory/rate-case risk that could cap earnings growth. Next earnings are due July 30, 2026, with consensus EPS of $0.95. The stock trades within a 52-week range of $61.53 to $76.41.
May 21Eversource files for 11% double-digit Connecticut rate hike while CEO publicly resists data center buildoutMixed▶
On May 20 Eversource filed a letter of intent with Connecticut regulators seeking an average 11% rate increase across all customer classes (13% residential) starting July 1, 2027, citing a $503M annual revenue deficiency. CEO Joe Nolan stated the company is resisting data centers in its service territory because they only drive up the price of energy. On May 12 the Connecticut Supreme Court sent back to lower court a dispute with PURA over storm-cost recovery. Wells Fargo cut PT to $74 from $78 and UBS cut to $74 from $80, though BofA raised PT to $75 from $72. Risk: regulatory and political backlash to large rate hikes plus a FERC ROE complaint could compress returns.
May 20Eversource cuts 2026 EPS guidance to $4.57-$4.72 after FERC ROE reduction despite Q1 beat; shares rally 3.3% on May 12Mixed▶
Eversource Energy reported Q1 2026 GAAP EPS of $1.61 vs $1.50 prior year, with non-GAAP EPS of $1.73 beating the $1.63 consensus, on revenue of $4.5B vs $4.33B expected. Management cut full-year 2026 non-GAAP recurring earnings guidance to $4.57-$4.72 from $4.80-$4.95 following a FERC return-on-equity reduction and related charge. At the May 6 annual meeting, shareholders elected nine trustees, approved 2025 executive compensation on an advisory basis, and decisively rejected a proposal requiring an independent board chair; Deloitte was ratified as auditor for 2026. Shares climbed 3.3% on May 12 to $68.73. A $0.7875 quarterly dividend was declared, payable June 30.
May 19Eversource Energy's $0.7875 quarterly dividend records on May 18, 2026, with the Connecticut Supreme Court remand on storm-cost recovery still weighing on sentiment.Mixed▶
Eversource Energy reached its dividend record date of May 18, 2026 for the $0.7875 per share quarterly common dividend payable June 30. The action follows the company's Q1 2026 results (May 6) showing GAAP EPS of $1.61 versus $1.50 a year earlier, driven by transmission investment and gas distribution rate increases. Sentiment remains mixed after a Connecticut Supreme Court ruling on May 12 sent a key storm-cost recovery dispute with PURA back to a lower court, prolonging regulatory uncertainty. CEO Joe Nolan also publicly stated the utility is 'resisting' data center load growth in its service territory, citing rate-impact concerns. BMO Capital cut its price target to $73 on May 11, reflecting cautious valuation views. The risk is continued regulatory drag on storm-cost recovery and ROE pressure from FERC complaints.
May 18Connecticut Supreme Court remanded Eversource's storm cost recovery case to lower court on May 12, while shares rallied 3.3% to $68.73 the same day.Mixed▶
On May 12, 2026, Connecticut's Supreme Court remanded a dispute between Eversource and Connecticut's Public Utilities Regulatory Authority over storm damage cost recovery (2017-2018 storms) back to a lower court for further review. Shares climbed 3.3% to $68.73 on May 12 on technical strength. BMO Capital maintained its rating but cut the price target to $73 (from $75) on May 11, while Scotiabank issued a Sell rating on May 8. Ratepayer advocates from five New England states filed a FERC complaint over a $385M transmission project they say was misclassified to bypass regulatory review, which Eversource disputes. Q1 non-GAAP EPS of $1.73 beat consensus of $1.63, and a $0.7875 quarterly dividend is payable June 30 with record date May 18.
May 15Eversource Energy trades near $69 after 3.3% May 12 rally; CEO Nolan reiterates anti-data-center stance and ROE appeal hits 2026 earningsMixed▶
Eversource shares climbed 3.3% on May 12 to $68.73 and traded $68.16-$69.00 on May 14. CEO Joe Nolan made headlines this week reiterating that Eversource is "resisting" data center development in its New England service territory, arguing it would drive up energy prices, while pointing to Revolution Wind and Vineyard Wind as moderating forces. Eversource and other New England utilities are appealing a FERC ruling that set base transmission ROE at 9.57% (vs. Eversource's requested 11.39%), a decision expected to cut 2026 after-tax earnings by roughly $70M. Q1 2026 non-GAAP EPS came in at $1.73 vs. $1.63 consensus on $4.5B revenue, with the board approving a $0.7875/share dividend payable June 30. BMO Capital trimmed PT to $73 on May 11; Scotiabank has a Sell.
May 14Eversource shares rallied 3.3% to $68.73 on May 12 after Q1 EPS of $1.73 beat $1.63 consensus, though FERC ROE cut to 9.57% pressures earnings by ~$70MMixed▶
Eversource reported Q1 2026 non-GAAP EPS of $1.73 vs $1.63 consensus on revenue of $4.5B (vs $4.33B estimate). Shares rallied 3.3% on May 12 to $68.73. The board declared a $0.7875 dividend payable June 30. Trustee W Robert Mudge bought 750 shares at $66.49 on May 8. CEO Joe Nolan reiterated opposition to data center growth in service territory. Recent FERC decision lowered New England transmission ROE to 9.57%, expected to reduce 2026 after-tax earnings by ~$70M. BMO cut PT to $73 May 11, BofA raised to $75 May 1, Wells Fargo cut to $74.
May 13Eversource Energy stock fluctuated between $66.86-$68.05 on May 12 with overhang from cut 2026 guidance ($4.57-$4.72 vs prior $4.80-$4.95) after FERC ROE reduction and Aquarion sale impact.Negative▶
Eversource trades near $67.72 on May 12 as investors digest the May 6 FERC-related guidance cut and Scotiabank's May 8 Sell rating. While Q1 2026 results beat consensus, the lowered 2026 outlook reflects regulatory headwinds. CEO Joe Nolan reaffirmed resistance to data center development in service territory. The company raised its 2026-2030 capital plan by $2.3B and approved a $0.7875/share dividend (record May 18). Consensus PT is $71.90 (Hold). Trustee insider buying signals some internal confidence.
May 12Eversource trimmed 2026 non-GAAP EPS guidance to $4.57-$4.72 from $4.80-$4.95 after a $43.9M after-tax charge tied to a FERC order cutting New England transmission ROE to 9.57%.Negative▶
On May 6, Eversource reported Q1 non-GAAP EPS of $1.73 vs. $1.63 estimate and revenue of $4.5B, but lowered its 2026 EPS guidance due to a FERC transmission ROE cut and pending Aquarion sale impact. Scotiabank issued a Sell rating on May 8 and Wells Fargo cut its target to $74 from $78, while BofA raised to $75 from $72. Shares fell about 5.93% over the past week. Connecticut PURA approval clears the way for the Aquarion sale to close after the mid-June appeal window. The stock's near-term setup is pressured by regulatory headwinds despite the EPS beat.
May 11Eversource cuts 2026 EPS guidance to $4.57-$4.72 after $44M FERC ROE charge despite Q1 beatNegative▶
Eversource Energy reported Q1 2026 non-GAAP EPS of $1.73 on May 6, beating the $1.63 consensus, with revenue of $4.5 billion exceeding the $4.33B estimate. However, the company trimmed 2026 non-GAAP recurring earnings guidance to $4.57-$4.72 per share from $4.80-$4.95, citing a FERC decision and expected Aquarion sale impact. Results included a $43.9 million after-tax charge from a FERC order cutting transmission ROE, which management is challenging. Long-term 5-7% CAGR earnings outlook through 2030 reaffirmed. Shareholders elected nine trustees and rejected an independent board chair proposal. A $0.7875 quarterly dividend (4.7% yield) declared for June 30 payment. CEO stated company is resisting data centers. Scotiabank cut target to $63 from $66 with Sector Underperform.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| ESEVERSOURCE | $69.46 | +0.59% | +0.8% | 14.1x | 0.73 | $26.2B |
| SOSOUTHERN | $93.26 | +0.78% | -0.6% | 18.9x | 0.34 | $104.9B |
| CEGCONSTELLATION | $274.07 | +2.58% | -2.6% | 20.2x | 1.09 | $97.9B |
| DUKDUKE | $123.92 | +0.15% | +0.0% | 17.3x | 0.38 | $96.6B |
| AEPAMERICAN | $127.69 | -0.45% | -0.9% | 18.6x | 0.52 | $69.5B |
| VSTVISTRA | $163.79 | +3.12% | +13.7% | 14.9x | 1.41 | $55.2B |
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