Eversource Energy: Regulatory Overhang Priced in at Current Levels

Goldman Sachs maintains its Buy rating on Eversource Energy (ES) with a $78 price target, citing 1Q26 results and significant upcoming regulatory catalysts in Connecticut, New Hampshire, and Massachusetts.

Key Takeaways

• 1.Management has submitted a Section 205 filing to FERC proposing a new base transmission ROE of 11.39%, which could provide earnings upside compared to the current 9.57% guidance if a settlement is reached.
• 2.The pending sale of Aquarion Water is a critical near-term de-risking catalyst, with the final appeal window set to expire on June 14.
• 3.Regulatory momentum is improving in New England, evidenced by a $2 bn storm cost securitization path across Connecticut and New Hampshire and supportive grid modernization orders in Massachusetts.

Table of Contents

• Key earnings takeaways
• Model Updates
• Valuation and Key Risks
• Disclosure Appendix
• Global product; distributing entities
• General disclosures

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