Erste Group analysts initiated coverage on Public Service Enterprise Group (NYSE:PEG) with a Buy rating, highlighting strong growth prospects.
The analysts noted that the company is poised for significant improvement in both sales and earnings in the coming financial year. Operating profit is expected to rise by approximately 14% year-over-year, while net profit is projected to grow by around 11%. A key driver of this growth is the increasing demand for electricity from data centers in the U.S., with the company receiving multiple inquiries from potential clients throughout its service area.
The analysts also pointed out that Public Service Enterprise Group’s medium-term earnings forecasts, which estimate earnings per share growth of 7% annually, do not yet factor in potential growth opportunities from nuclear power plant capacity expansion. This potential could further support the stock’s upward momentum.