Public Service Enterprise Group: NJ Consultant Report Signals Change but within Our Expectation

Research evidence excerpt

Public Service Enterprise Group: NJ Consultant Report Signals Change but within Our Expectation

Global Research

16 July 2026ab

First Read

EquitiesPublic Service Enterprise Group

NJ Consultant Report Signals Change but within United States

Our Expectation Electric Utilities

12-month rating Buy

12m price target US$104.00

What's Our Take?

The New Jersey Board of Public Utilities' consultant's report on regulation presented a

comprehensive analysis and represents the first step in the process of implementing Price (15 Jul 2026) US$79.88

changes. In our view it was reasonable with findings not outside our expectations. The RIC: PEG.N BBG: PEG US

report kicks off two parallel phases to study including a roadmap for implementation

Trading data and key metrics

and supporting quantitative analysis. Recommendations would require BPU approval.

As expected the report raised the issue of appropriate ROE and optimal financing but 52-wk range US$90.14-76.44

also acknowledged the detrimental impact of regulatory lag and the potential benefits Market cap. US$39.9b

of multi-year rate plans and earnings sharing mechanisms. We believe investor concern Shares o/s 500m (COM)

over the process if it is a meaningful factor in PEG's 5% discount to the Utility group at Free float 100%

16x our $5.00 in 28E is overdone as we we value the stock at a premium given utility Avg. daily volume ('000) 953

growth and generation upside and view the action so far as reasonable. Avg. daily value (m) US$76

Common s/h equity (12/26E) US$17.8b

What Happened? P/BV (12/26E) 2.2x

After the close 7/15 the NJ BPU released the consultant's report on changes to Net debt to EBITDA (12/26E) 5.5x

regulation. Below we list key findings although this list is not comprehensive.

EPS (UBS, diluted) (USD)