NiSource stock price target raised to $46 by Wolfe Research

Wolfe Research raised its price target on NiSource (NI) to $46.00, maintaining an Outperform rating, citing the utility's robust 8-10% rate base growth and 6-8% EPS growth targets through 2029. This positive outlook is supported by NiSource's strong Q2 2025 earnings beat, efficient capital expenditure recovery mechanisms, and a solid balance sheet providing financing flexibility for future growth initiatives, including renewable energy expansion. CFRA also increased its price target to $45.00, reflecting broader analyst confidence in the company's strategic initiatives and consistent financial performance within the utility sector.

Analysis

NiSource (NI) is demonstrating strong operational and financial momentum, underscored by positive analyst actions from Wolfe Research and CFRA, who have both raised their price targets to $46 and $45 respectively. The bullish sentiment is anchored in the company's clear growth trajectory, with a targeted 8-10% rate base growth and 6-8% annual EPS growth through 2029, positioning it as a high-growth name within the utility sector. This outlook is substantiated by recent performance, including a Q2 2025 earnings and revenue beat, and revenue growth of 16.98% over the last twelve months. A key strength highlighted by analysts is NiSource's efficient capital recovery model, where approximately 81% of capital expenditures are recouped via trackers and riders, significantly reducing regulatory lag. The company's balance sheet has been fortified by the NIPSCO stake sale, achieving a projected FFO/D ratio of 14-16% and providing ample flexibility to fund $2.2 billion in capital opportunities. Furthermore, positive ESG developments, such as the plan to be coal-free by 2028, and a 39-year track record of consistent dividend payments, enhance its investment profile.

Key Decisions for Investors

• Investors may consider NiSource a compelling opportunity for growth within the defensive utility sector, given its strong multi-year EPS and rate base growth targets which are above the industry average.
• Monitor the company's execution on its capital expenditure plans and its ability to navigate regulatory processes, as the efficient recovery of these investments is a key pillar of its financial strategy.
• Income-oriented investors should note the company's long-standing history of dividend payments for 39 consecutive years, signaling a reliable commitment to shareholder returns.
• Given that the stock is trading near its 52-week high, prospective investors should carefully evaluate the entry point valuation against the company's robust but well-telegraphed growth prospects.