Eversource Energy (ES.N): Resuming Coverage; Eye on New England Transmission ROE Decision

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Eversource Energy (ES.N): Resuming Coverage; Eye on New England Transmission ROE Decision

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27 Jul 2026 05:46:19 ET │ 21 pages

Eversource Energy (ES.N)

Resuming Coverage; Eye on New England Transmission ROE Decision

CITI'S TAKE

We have renewed our rating after a period of Rating Suspended with a

Netural rating and a target price of $81. Following mgmt. meeting, we are on

the view that 1) FERC’s Nov 30 transmission ROE decision could land at Neutral from Rating Suspended

~10.43% which implies a 6.8% 5-year EPS growth rate vs ~6% Street Price (24 Jul 26 16:00) US$74.91

consensus, 2) the $880M transmission refund is less likely to happen (NH

Target price US$81.00securitization also helps financing plan), and 3) offshore wind exposure is

minimal with Revolution Wind COD by YE. from -

Expected share price return 8.1%

Nov 30 FERC Transmission ROE Decision Should Drive EPS Upside — One of the Expected dividend yield 4.3%

most notable catalysts for Eversource in 2H26 should be FERC’s ruling on New

England transmission ROE by November 30. Our view, based on our detailed Expected total return 12.5%

analysis on the ROE calculation, is that this regulatory process could yield a FERC Market Cap US$28,172M

ROE outcome of ~10.43% (vs New England Transmission Owners’ 10.79%/11.39%

proposal). This implies an EPS growth rate of 6.8% (we assume the 50bps RTO adder

would not be added back in Connecticut). In our view, NETO is showing more

conservative assumptions for company size adjustments, but more optimistic Price Performance

assumption for proxy group changes and long-term GDP growth rate. NETO

(RIC: ES.N, BB: ES US)presented both Value Line and Bloomberg beta and noted that FERC recently

encouraged use of the latter. See the body of the note for a range of potential