UBS Trims Eversource (ES) Target but Sees Constructive Regulatory Progress

Core Insights - Eversource Energy is recognized as one of the 14 Best Dividend Growth Stocks to Buy and Hold in 2026 [1] - UBS has lowered its price target for Eversource Energy to $73 from $78 while maintaining a Neutral rating, citing constructive regulatory progress [2] - Eversource experienced strong gains in 2025, with shares rising over 18%, but faced a nearly 9% drop in November due to regulatory rejection of its water utility business sale [3] Regulatory Developments - Eversource's NStar Gas reached a rate settlement with the Massachusetts Attorney General, which, if approved, would help the company avoid a formal rate case and resolve pending regulatory issues [2] - The company had agreed to sell its water utility, Aquarion, for $2.4 billion, but regulators rejected the sale due to concerns over managerial suitability and public interest, despite meeting financial and technological requirements [4] - The Connecticut Public Utilities Regulatory Authority is exploring a non-profit ownership model for water utilities, but has found it challenging to move away from the investor-owned structure [5] Financial Performance - Eversource's share price increased by more than 18% in 2025, but the momentum was hindered by a nearly 9% decline in November following regulatory decisions [3] - The proposed sale of Aquarion was initially seen as a strategic move to streamline operations and reduce debt, but regulatory hurdles have complicated these efforts [4]