Raymond James analyst J.R. Weston has commenced coverage on New Jersey Resources (NJR, Financial), assigning it an Outperform rating. Weston has set a target price of $49 for the stock. This rating reflects optimism about NJR's potential in the market and suggests that the company is expected to perform well compared to its peers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for New Jersey Resources Corp (NJR, Financial) is $55.17 with a high estimate of $61.00 and a low estimate of $50.00. The average target implies an upside of 22.92% from the current price of $44.88. More detailed estimate data can be found on the New Jersey Resources Corp (NJR) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, New Jersey Resources Corp's (NJR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for New Jersey Resources Corp (NJR, Financial) in one year is $36.98, suggesting a downside of 17.6% from the current price of $44.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the New Jersey Resources Corp (NJR) Summary page.
NJR Key Business Developments
Release Date: May 06, 2025
- NFEPS (Net Financial Earnings Per Share): Increased to $1.78 per share in Q2, up from $1.41 per share last year.
- Fiscal 2025 NFEPS Guidance: Raised to a range of $3.15 to $3.30 per share, an increase of $0.10 from prior guidance.
- Capital Expenditures: Planned range of $1.3 billion to $1.6 billion for fiscal 2025 and 2026.
- Cash Flow from Operations: Projected between $460 million and $500 million for fiscal 2025.
- Adjusted Funds from Operations/Adjusted Debt Ratio: Expected to range between 19% and 21% for fiscal 2025.
- Investment in New Jersey Natural Gas: $254 million invested this year, with 46% providing near real-time returns.
- Solar Capacity: 31 megawatts added this fiscal year, with 60 megawatts under construction.
- Residential Solar Portfolio Sale: Expected net benefit of approximately $0.30 per share for fiscal 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- New Jersey Resources Corp (NJR, Financial) reported strong performance across all business segments, particularly in its wholesale gas marketing business, NJR Energy Services, which capitalized on pricing volatility.
- The company raised its fiscal 2025 NFEPS guidance by $0.10 per share to a revised range of $3.15 to $3.30 per share, exceeding its long-term growth target.
- New Jersey Natural Gas completed the first full quarter of new rates following a base rate case settlement and initiated investments under the expanded SAFE Green program.
- Clean Energy Ventures is advancing its solar portfolio with new projects and has a robust pipeline of over 1 gigawatt, with a focus on diversification across multiple states.
- The Storage and Transportation business is making progress with the capacity recovery project at Leaf River and is engaged in the settlement process for the Adelphia Gateway Section 4 rate case.
Negative Points
- The company acknowledges that many factors beyond its control could cause results to materially differ from expectations, highlighting potential risks in forward-looking statements.
- There is uncertainty around tariffs and potential cost increases, although NJR has structured provisions in place to mitigate these risks.
- The Leaf River expansion project lacks a finite timeline and is subject to the completion of contracts and evaluation of costs, which introduces uncertainty.
- The evolving macroeconomic environment, including potential legislative changes in New Jersey, could impact NJR's regulatory landscape and affordability initiatives.
- The company faces potential supply chain risks and uncertainties related to equipment and materials needed for projects like the Leaf River expansion.
