Headquartered in Merrillville, Indiana, NiSource Inc. (NI) is a leading energy holding company. With a market cap of $12.54 billion, it operates one of the nation's largest natural gas distribution networks by customer count. NiSource's principal subsidiary, NiSource Gas Distribution Group, Inc., oversees natural gas distribution to residential, commercial, and industrial customers. The majority of NiSource's operating income is derived from its rate-regulated businesses, highlighting its strong presence in the regulated utility sector.
NiSource shares significantly underperformed the broader market over the past year. The stock has gained 4.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.5%. In 2024, NI stock has gained 5.4%, while the SPX is up 9.8% on a YTD basis.
Narrowing the focus, NI’s underperformance is also evident compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained 10.6% over this period. Moreover, the ETF’s 12.8% returns on a YTD basis outshine the stock’s gains over the same time frame.
On May 8, NI reported Q1 results, with adjusted earnings of 85 cents per share and revenue of $1.71 billion. The stock declined 1.1% on the earnings release day but increased marginally the following day.
For the current fiscal year, ending in December, analysts expect NI’s EPS to grow 6.9% to $1.71 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 10 analysts covering NI stock, the consensus rating is a “Strong Buy.” That’s based on 10 “Strong Buy” ratings.
This configuration is slightly less bullish than three months ago, with 11 suggesting a “Strong Buy.”
On May 9, BMO Capital analyst James Thalacker maintained a “Buy” rating on NI with a price target of $31.00, implying a potential upside of 10.8% from current levels. This aligns with the mean price target.
The Street-high price target of $33 suggests an upside potential of 17.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
