PEG Stock Forecast & Price Target

Public Service Enterprise Group has demonstrated robust year-over-year financial performance, with a 5.7% increase driven by contributions from both its regulated utility and power segments. The company has raised its revenue outlook by $3.0 billion, reflecting a 15% increase at the midpoint, largely fueled by a significant growth in the rate base projected to increase approximately 12% in 2024. Additionally, a heightened capital expenditure plan of $22.5 billion to $26 billion over the next five years underpins the potential for sustained growth, further supported by favorable regulatory outcomes and improved pricing from long-term contracts.

Public Service Enterprise Group faces a negative outlook due to several financial headwinds, including a potential contraction of utility multiples in a higher interest rate environment, which could significantly impact its intrinsic value. Additionally, forecasts indicate a decrease in expected earnings per share (EPS) for the years 2025-2028, with estimates revised down to between $4.01 and $4.85, reflecting broader market challenges and internal operational issues. Furthermore, risks inherent to utility operations, such as rate case uncertainties and a reduced capital expenditure outlook, continue to exert downward pressure on the company’s financial performance.