NiSource: Attractive Despite Data Center And Storm Recovery Concerns

Summary NiSource remains a "Buy" despite recent underperformance, with shares down 14% since July amid concerns about the summer storm response and data center growth. Storm-related costs are manageable, with potential EPS impact of just $0.02–$0.03, and NI expected to maintain strong regulatory relationships. NI's data center growth pipeline remains robust, with 4 GW contracted and another 3 GW advancing, though political pushback may slow incremental expansion. I project 2024 EPS of $2.02–$2.06 and 8% annual growth through 2033, supporting an attractive ~11% long-term return in this noncyclical sector. jetcityimage/iStock Editorial via Getty Images Share of NiSource Inc. ( NI ) have been a muted performer over the past year, gaining just 3%. The Indiana-centric utility had been a stronger performer, but the stock has performed poorly over the past couple of months. There have been two primary sources This article was written by Seeking Profits 5.73K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.