New Jersey Resources (NJR) PT Raised to $49 at Guggenheim

Guggenheim analyst Shahriar Pourreza raised the price target on New Jersey Resources (NYSE: NJR) to $49.00 (from $46.00) while maintaining a Neutral rating.

The analyst commented: "NJR reported FY4Q24 NFEPS, introduced its 2025 NFEPS guidance range which is off an updated rebase of $2.83 (vs. prior $2.25 in 2022 which implies an 8% NFEPS CAGR), and reaffirmed its LT growth rate. With the update, the company announced the sale of CEV’s residential solar portfolio, Sunlight Advantage, for $132.5mm. According to the company, the decision to sell Sunlight Advantage was to simplify the CEV business, focus on commercial solar growth, while further strengthening the balance sheet and recycling capital to higher returning projects. NJR currently sees a pipeline of solar projects which total ~1.1GW’s and is positioned to capitalize on commercial projects with high single-digit unlevered returns. Separately, the company received a constructive outcome from the New Jersey Board of Public Utilities (BPU) in the settlement of its NJNG’s rate case last week (please see our thoughts HERE). With constructive regulatory outcomes, continued rate base investments, solid customer growth, and a strong pipeline of commercial solar projects, NJR continues to see LT NFEPS in the range of 7%-9% with potential upside opportunities not imbedded in the base plan. We maintain our Neutral rating and raise our PT to $49 (from $46) on a slightly higher multiple."

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