NiSource (NYSE:NI) shares rose more than 1% on Wednesday after Mizuho analysts initiated coverage on the company with an Outperform rating and a price target of $33.
The analysts highlighted that NiSource is expected to achieve slightly above the midpoint of its adjusted EPS annual growth target of 6-8% through 2028, estimating around 7.2%. This growth is considered attractive compared to peers, supported by significant capital deployment opportunities, constructive regulatory environments, and flexible financing options bolstered by recent balance sheet improvements following the NIPSCO stake sale.
The analysts also noted that NiSource stands to benefit from data center-related load growth, particularly in its Indiana (NIPSCO) territory, which offers industry-friendly conditions and tax advantages enacted by state legislation. While data center load additions are not included in current estimates, the analysts believe these projects are likely to materialize in the medium to long term, potentially enhancing NiSource’s rate base growth.