New Jersey Resources (NJR) PT Raised to $50 at Mizuho

Mizuho analyst Gabriel Moreen raised the price target on New Jersey Resources (NYSE: NJR) to $50.00 (from $47.00) while maintaining a Neutral rating.

The analyst commented: "The outcome of NJNG's recently settled rate case was better than expected and improves visibility on NJR's path to achieve ~7-9% NFEPS growth over the medium-term. It also confirms growth in NJR's non-regulated businesses is unlikely to dilute utility earnings - a positive for the story. That said, we eventually expect the Street to focus on the prospects around NJNG rate base growth considering near-term utility capex should be similar to FY23/24 levels and NJNG's system seems more 'modernized' than LDC peers. We continue to believe NJR's long-held ~7-9% long-term NFEPS growth guidance could register at the higher end over the medium-term. Non-utility earnings growth is admittedly lower quality, but has indirectly helped NJR's higher-valued businesses, which may deserve more holistic credit. Finally, we expect focus to shift back to 'CEV' given recent project delays and the incoming administration. We raise our PT to $50 and reiterate Neutral."

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