Argus analyst Marie Ferguson downgraded Eversource Energy from Buy to Hold on June 12, without a price target. The downgrade follows a Federal Energy Regulatory Commission order that reduced the utility's electric transmission return on equity by 100 basis points, applied retroactively to 2011. Eversource now expects fiscal 2026 adjusted earnings per share between $4.57 and $4.72, reflecting a lowered transmission base ROE of 9.57%, though it reaffirmed a long-term earnings growth rate target of 5% to 7%. Argus noted the company's annual dividend yield above 4.5% and its legal challenges to the FERC order, but sees near-term uncertainty.
Eversource EnergyFERC order reduced transmission ROE by 100 bps, retroactive to 2011, lowering earnings outlook.