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NiSource (NYSE:NI) +1.3% in Thursday’s trading as Mizuho initiates coverage with an Outperform rating and $33 price target, expecting the company will deliver slightly above the midpoint on its adjusted EPS annual 6%-8% growth target through 2028.
NiSource’s (NI) growth outlook is attractive vs. peers and is underpinned by a robust set of capital deployment opportunities, constructive regulatory jurisdictions and flexible financing options given recent balance sheet stability following the NIPSCO stake sale, according to Mizuho’s Gabriel Moreen.
The analyst expects NiSource (NI) will be a prime beneficiary of data center-related load growth, and the company’s Indiana territory is well suited to industry needs, including tax advantages already passed by state government.
Moreen does not incorporate data center load additions in his estimates, but he believes it is highly likely such projects will materialize over the medium- and long-term to support and potentially enhance NiSource’s (NI) rate base growth.