Key insights
- Mizuho reiterates an Outperform rating on NiSource, citing new data center energy agreements with Alphabet and Amazon as significant growth drivers. These deals expand NiSource's capacity commitments and are expected to enhance regulatory support. The company also raised its long-term EPS growth forecast. While the stock may be slightly overvalued, the growing data center pipeline offers strong earnings visibility compared to peers, suggesting a positive outlook for the utility sector.
Investing.com - Mizuho reiterated an Outperform rating and $52.00 price target on NiSource (NYSE:NI) following the company’s announcement of new data center energy agreements. The target aligns with the broader analyst consensus of Outperform, though InvestingPro analysis suggests the stock is slightly overvalued at current levels near $46.
The utility signed a long-term energy supply agreement with Alphabet and expanded an existing contract with Amazon. The Amazon deal accelerates site energization and increases the company’s total capacity commitment.
The agreements bring NiSource’s total signed capacity to roughly 4GW, with additional projects in active negotiations and development. Aggregate customer savings have expanded, which Mizuho views as a key enabler of continued regulatory support.
Following the first quarter 2026 results, NiSource management raised its long-term consolidated adjusted earnings per share compound annual growth rate to 9-10% through 2033, up from 8-9%. The company’s GenCo unit is expected to contribute $0.25-0.35 per share by 2030. For deeper analysis of NiSource’s growth trajectory, the company’s Pro Research Report offers comprehensive insights into its data center expansion strategy.
Mizuho views NiSource’s growing data center pipeline as a meaningful growth lever positioning the company well versus utility peers on earnings visibility.
In other recent news, NiSource Inc. reported its first-quarter 2026 earnings, revealing a slight beat in earnings per share at $1.06 compared to the forecasted $1.05. However, the company faced a notable revenue miss, reporting $2.28 billion against an expected $2.6 billion, marking a negative surprise of -12.31%. Additionally, NiSource completed a public offering of $1.25 billion in senior notes, with $500 million of 4.750% notes due 2031 and $750 million of 5.300% notes due 2036. This offering was underwritten by firms including BNP Paribas Securities Corp. and BofA Securities, Inc. At the company’s recent annual meeting, all nominated directors were elected, and key proposals were approved by shareholders. The elected board members include Peter A. Altabef and Sondra L. Barbour, among others. NiSource also declared a quarterly dividend of $0.30 per share, set to be paid on August 20, 2026. These developments reflect ongoing strategic decisions and financial maneuvers by the company.
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