On Wednesday, BMO (TSX:BMO) Capital Markets adjusted its price target for Public Service Enterprise Group Inc. (NYSE:PEG) shares, increasing it to $69.00, up from the previous $67.00, while retaining a Market Perform rating on the stock. This adjustment follows the company's recent quarterly earnings report, which aligned with analyst expectations.
Public Service Enterprise Group's performance in the first quarter was noted as consistent, with no significant surprises during the earnings call. The company's discussion during the call primarily centered on the potential for forging contracts with data centers, a point of interest for investors. The management's commentary on this opportunity was received positively, as it aligns with New Jersey’s goals to integrate economic development with energy policy.
The analyst from BMO Capital Markets acknowledged the positive investor sentiment towards Public Service Enterprise Group's potential data center contracts. These contracts are seen as a strategic move that could benefit the company by aligning with the state's broader objectives of combining economic growth with sustainable energy initiatives.
Despite the positive outlook on the company's strategic moves, BMO Capital maintains a neutral stance on the stock, citing valuation concerns as the reason for staying on the sidelines. The firm's decision to maintain the Market Perform rating indicates a wait-and-see approach to the stock's future performance.
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