Can NI's 2025 forecast recover from 2024's misses?

NiSource Inc. (NI) faces a challenging recovery path in 2025 following misses in 2024, but several factors suggest potential for improvement: 1. **Strategic Investments**: NiSource's plan to modernize infrastructure and add clean assets to its portfolio is expected to boost performance. These investments could enhance operational reliability and support growth. 2. **Financial Outlook**: The company's 2025 earnings per share (EPS) is forecasted to grow by 11.24%, indicating a positive trend. Additionally, the consensus estimate for 2025 sales suggests a year-over-year increase of 11.1%, reflecting growth expectations. 3. **Dividend Growth**: NiSource has a history of increasing dividends, with an annualized dividend expected to be 9-11% higher over the long term. This consistent dividend growth could attract income-focused investors and provide a stable return. 4. **Analyst Confidence**: Mizuho Securities increased NiSource's price target to $44.00, maintaining an Outperform rating, which suggests confidence in the company's future performance. 5. **Industry Position**: As a large-cap stock with a dominant market position, NiSource is well-positioned to benefit from industry trends and regulatory frameworks. Its focus on safety and infrastructure investment supports operational excellence and customer safety. However, challenges remain, including the need to meet future interest obligations and the potential impact of regulatory filings and counterparties on growth expectations. NiSource will need to navigate these factors carefully to ensure a strong recovery in 2025.