NiSource started Outperform at RBC, as Indiana among Midwest's best data center markets

[Power lines and sunset landscape]
Gargolas/iStock via Getty Images

NiSource (NI [https://seekingalpha.com/symbol/NI]) up 1.8% in Thursday's trading as RBC Capital initiates coverage with an Outperform rating and $52 price target, saying the utility offers "a rare combination of above-peer EPS growth and a uniquely favorable data center setup in Indiana that... is not yet fully reflected in the stock."

RBC analyst Stephen D'Ambrisi believes NiSource's (NI [https://seekingalpha.com/symbol/NI]) 7%-8% premium on his FY 2030 earnings estimates should expand, "driven by a ~200 bps EPS growth advantage over peers, Indiana’s position as one of the most attractive data center markets in the Midwest, and a GenCo structure that helps to insulate NIPSCO from the affordability pressures increasingly weighing on regional peers."

Despite NiSource's (NI [https://seekingalpha.com/symbol/NI]) premium ranking relative to large-cap peers, the analyst sees room for further multiple expansion as the data center opportunity becomes better understood and management executes on near-term announcements.

Public Service Enterprise Group (PEG [https://seekingalpha.com/symbol/PEG]) also up 1.8% as D'Ambrisi launches coverage with a Sector Perform rating and $81 PT, saying the New Jersey regulatory overhang that has pressured the stock over the past year may be alleviating, but the analyst says he still needs more clarity on the path forward.

MORE ON NISOURCE AND PUBLIC SERVICE ENTERPRISE GROUP

* NiSource: A Utility AI Winner Worth Buying On Pullbacks [https://seekingalpha.com/article/4917310-nisource-a-utility-ai-winner-worth-buying-on-pullbacks]
* NiSource: Positioned For Further Data Center-Powered Growth [https://seekingalpha.com/article/4888393-nisource-positioned-for-further-data-center-powered-growth]
* Public Service Enterprise Group: What It Would Take For Upside [https://seekingalpha.com/article/4915528-public-service-enterprise-group-what-it-would-take-for-upside]