Company Reports

We reaffirm our $46 fair value estimate and narrow moat rating for New Jersey Resources after the firm reported $1.41 per share of adjusted earnings in its second fiscal quarter.

New Jersey Resources, or NJR, is one of the few U.S. utilities that has committed to maintaining and growing a diverse set of businesses from rate-regulated natural gas distribution to renewable energy investments. Management's investments across all of its businesses are paying off nicely for investors so far.

We reaffirm our $46 fair value estimate and narrow moat rating for New Jersey Resources after the firm reported $0.74 per share of adjusted earnings in its first fiscal quarter.

We are reaffirming our $46 fair value estimate and narrow moat rating for New Jersey Resources after the firm filed a request with New Jersey regulators to raise customers' gas rates by $222.6 million.

New Jersey Resources, or NJR, is one of the few U.S. utilities that has committed to maintaining and growing a diverse set of businesses from rate-regulated natural gas distribution to renewable energy investments. Management's investments in businesses such as solar and natural gas midstream are paying off nicely for investors so far.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

New Jersey Resources, or NJR, is one of the few U.S. utilities that has committed to maintaining and growing a diverse set of businesses from rate-regulated natural gas distribution to renewable energy investments. Management's investments in nonregulated energy businesses such as solar and natural gas midstream are paying off nicely for investors.

We are reaffirming our $45 fair value estimate for New Jersey Resources after the firm reported earning $2.70 per share on an adjusted basis during fiscal year 2023, up 8% from fiscal year 2022. We reaffirm our narrow moat rating.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

We are reaffirming our $45 fair value estimate for New Jersey Resources after the firm reported earning $0.10 per share on an adjusted basis during the third quarter of the 2023 fiscal year, up from a $0.04 loss in the same quarter last year. We reaffirm our narrow moat rating.

We are raising our fair value estimate for New Jersey Resources, or NJR, to $45 per share from $43 after gaining more confidence in the company's medium-term growth during recent discussions with management. We reaffirm our narrow moat and stable moat trend ratings.

New Jersey Resources, or NJR, is one of the few U.S. utilities that has committed to maintaining and growing a diverse set of businesses from rate-regulated natural gas distribution to renewable energy investments. Management's investments in nonregulated energy businesses such as solar and natural gas midstream are paying off nicely for investors.

We are reaffirming our $43 fair value estimate for New Jersey Resources after the firm reported earning $1.16 per share on an adjusted basis during the second quarter of the 2023 fiscal year, down from $1.36 in the same quarter last year. We reaffirm our narrow moat and stable moat trend ratings.

We are raising our fair value estimate for New Jersey Resources to $43 from $42 after the firm reported earning $1.14 per share on an adjusted basis during the first quarter of the 2023 fiscal year, up from $0.69 in the same quarter last year. An unexpected jump in earnings at the energy services business during the quarter accounted for most of the benefit. We reaffirm our narrow moat and stable moat trend ratings.

New Jersey Resources remains at its core a growing regulated gas distribution utility. However, management's investments in nonregulated energy businesses such as solar and natural gas midstream are paying off nicely for investors.

New Jersey Resources remains at its core a growing regulated gas distribution utility. However, management's investments in nonregulated energy businesses such as solar and natural gas midstream are paying off nicely for investors.

We are reaffirming our $41 fair value estimate for New Jersey Resources after the company reported earning $2.50 per share on an adjusted basis for fiscal 2022. This is up 16% from fiscal 2021 and far exceeded our and management's earnings outlook at the beginning of the year. We are reaffirming our narrow moat and stable moat trend ratings.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

New Jersey Resources remains at its core a growing regulated gas distribution utility even after management's recent investments in nonregulated energy businesses such as solar and natural gas midstream. NJR's regulated utility business will continue to produce more than two thirds of earnings on a normalized basis for the foreseeable future as New Jersey's need for infrastructure safety and decarbonization investments provide growth opportunities.

Our initial analysis of the U.S. Inflation Reduction Act that President Joe Biden plans to sign on Aug. 16 has led us to reaffirm or make slight increases to our fair value estimates for U.S. utilities. We are reaffirming our moat and moat trend ratings.