Eversource shares dip after Wells Fargo downgrades on failed deal

Eversource Energy

20/11/2025 13:18

** Shares of utility Eversource ES.N down 1.1% at $64.51 premarket

** Wells Fargo downgrades ES to "equal weight" from  "overweight"; cuts PT to $63 from $79 after Connecticut regulator rejected company's proposal to sell its water utility business

** New PT represents 3.5% downside to stock's last close

** Eversource agreed in January to sell Aquarion to South Central Connecticut Regional Water Authority in a deal valued at $2.4 billion, after acquiring the water utility for about $1.7 billion in 2017

** Deal fails managerial suitability and responsibility requirements "in a manner consistent with the public interest", despite meeting financial and technological criteria - regulator

** "This is a major surprise given hopes that Connecticut regulatory environment had turned around. General consensus was this would get done"- Wells Fargo

** Seven of 19 brokerages rate the stock "buy" or higher, 9 "hold" and 3 "sell" or lower; median PT is $73.21- data compiled by LSEG

** Up to last close, Eversource up ~14% YTD

(Reporting by Dharna Bafna in Bengaluru)

((dharna.bafna@thomsonreuters.com))