HSBC Starts Public Service Enterprise Group Inc. (PEG) at Hold

HSBC analyst Meike Becker initiates coverage on Public Service Enterprise Group Inc. (NYSE: PEG) with a Hold rating and a price target of $72.50.

The analyst comments: “PSEG is part of our wires with overhang theme and we rate the stock Hold on 2026-30e RAB CAGR of 7% (2030-35e RAB CAGR of 5%) and 2026-30e EPS CAGR of 7% (2030-35e EPS CAGR of 4%) below the peer average. We forecast dividend growth of 7% to 2030e in line with EPS growth on a stable payout ratio of 65 %. We forecast adjusted TSR for FY26-32e of 10%; our as well as consensus EPS estimates are in line with company implied 2030 EPS guidance.

PSEG is a regulated electricity and gas networks operator in New Jersey and Long Island with merchant nuclear generation assets. The 2026-30 investment plan of cUSD24-28bn allocates cUSD22.5-24.5bn to regulated electricity and gas networks grid and the remaining to nuclear maintenance and others. We forecast PSEG’s capex to rise to cUSD5.3bn per annum by 2030e from USD4.1bn in 2025 with the entire increase coming from networks business. We do not see data centre load growth as a significant part of PSEG’s investment case and believe political scrutiny is currently above average in New Jersey on affordability concerns. Having said that, there is potential upside from nuclear contracting similar to recent IPP deals and New Jersey’s state solar and storage targets could lead to related network investment opportunities.”

For an analyst ratings summary and ratings history on Public Service Enterprise Group Inc. click here. For more ratings news on Public Service Enterprise Group Inc. click here.

Shares of Public Service Enterprise Group Inc. closed at $71.00 yesterday.

You May Also Be Interested In

• Oppenheimer Starts AeroVironment (AVAV) at Outperform
• CME Group (CME) PT Raised to $310 at UBS
• BTIG on Nike (NKE): 'We came away impressed with both his strategic mindset and leadership approach'