NiSource: Price targets
According to Wall Street analysts’ estimates, NiSource (NI) has a one-year median price target of $25.11 compared to its current market price of $25.94. This amounts to a possible downside of 3% over the next year.
Of the 14 analysts tracking NiSource, nine have recommended it as a “hold,” and three have recommended it as a “buy.” Two analysts have recommended it as a “sell” as of August 3, 2016.
The chart above shows brokers’ recommendations for NiSource over the next year.
Among NiSource’s utility peers, Pinnacle West Capital Group (PNW) has a flat to negative movement forecast for the next year. It has a price target of $77.70. Currently, it’s trading at $78.7.
DTE Energy (DTE) has a possible price target of $102.30. It’s currently trading at $98.14. This implies an upside of 4% over the next year.
Eversource Energy (ES) has a price target of $60.73. It’s currently trading at $59. This implies a possible upside of 3% over the next year.
What lies ahead for NiSource?
NiSource is targeting above average earnings growth for the next few years. Its earnings are expected to be triggered by its consistent investments, which will ultimately expand its rate base. Its dividend distributions are expected to follow its earnings growth.
Though its earnings growth has nearly halved due to its pipeline business spin-off, NiSource could see its earnings stabilize in the near future.