Wells Fargo upgraded Eversource Energy (NYSE: ES) to Overweight from Equal Weight on Monday and increased its 12-month price target to $78 from $71. The stock itself was trading at $73.36 at the time of the report, up 5.86% over the prior week and closing in on a 52-week high of $75.25.
The upgrade reflects what Wells Fargo analyst Shahriar Pourreza described as improving operating conditions for the Connecticut-based utility. The firm singled out a recent equity disclosure as a clearing event and highlighted better regulatory constructs in Connecticut as an important positive development for the company.
Valuation metrics cited alongside the upgrade show a price-to-earnings ratio of 16.09 and a PEG ratio of 0.16, figures from InvestingPro that the research note presented as indicative of an appealing valuation relative to the company’s growth outlook.
Wells Fargo also flagged expectations that revenue wind and storm-related costs will clear in the near term. The analyst wrote that "the mosaic pieces are coming together with or without the Aquarion sale," a phrase the firm used to summarize its view that multiple moving parts around assets and capital structure are aligning.
The research note set out a bull-case path tied to the Aquarion transaction. In that scenario, Wells Fargo said there is a high likelihood the deal completes, which could reduce the need for equity issuance. The firm added that lower dilution from less equity issuance could exert upward pressure on Eversource’s growth rate in later years.
InvestingPro data referenced in the note also records a 4.29% dividend yield for Eversource and states the company has paid dividends for 28 consecutive years.
Those analyst views arrive alongside the company’s recently reported fourth-quarter 2025 financials. Eversource posted earnings per share of $1.12, a slight miss versus the $1.13 analysts had expected, while revenue came in at $3.37 billion, ahead of a $2.94 billion forecast. The stronger revenue result was noted as a positive element of the quarter despite the marginal EPS shortfall.
Separately, the report noted there were no recent analyst upgrades or downgrades reported for Eversource Energy. These items were presented as part of the latest set of updates on the company’s financial performance and near-term outlook.
Market context and implications
The Wells Fargo move highlights several items investors watch for regulated utilities: the clarity of equity plans and the direction of state regulatory frameworks. Together these can influence capital-raising needs, dilution, and medium-term growth assumptions.
For income-focused investors, the combination of a mid-single-digit dividend yield and a long dividend payment history remains part of the company’s appeal, while the valuation metrics cited by InvestingPro were presented as supportive of the upgraded rating.