Eversource Energy Faces Uncertainty Amid Halt of Revolution Wind Project and Offshore Wind Industry Risks

Jefferies analyst Paul Zimbardo CFA has maintained a Sell rating on Eversource Energy with a price target of $47.00 due to concerns over the halted Revolution Wind project, which could result in significant financial liabilities for the company. The project's halt also reflects broader uncertainties in the offshore wind industry, exacerbated by the Trump Administration's stance on renewable energy projects.

Eversource Energy (NYSE: ES) stock experienced a significant drop following the Trump administration's decision to halt construction of Orsted's nearly completed Revolution offshore wind farm. The halt, ordered by the U.S. Department of Interior, has created financial uncertainties for Eversource, which has liabilities related to the project.

The Revolution project was being constructed by Orsted, a former 50% partner of Eversource. Despite the halt, Eversource remains responsible for additional cost increases. The project was previously sold to Global Infrastructure Partners (GIP) for $745 million, but Eversource still faces potential financial implications due to its liabilities [1].

Jefferies analyst Paul Zimbardo CFA has maintained a Sell rating on Eversource Energy with a price target of $47.00. Zimbardo cited the halt in the Revolution Wind project as a primary concern, noting that if the project is abandoned, Eversource could face a liability exceeding $745 million. Additionally, the halt reflects broader uncertainties in the offshore wind industry, exacerbated by the Trump Administration's stance on renewable energy projects [2].

The halt comes at a critical time as the Revolution project was approaching completion, creating uncertainty around potential financial implications for Eversource. The project's halt also reflects broader industry uncertainties, with the Trump Administration's focus on energy dominance and skepticism towards wind projects creating an environment of unpredictability.

Despite the setback, DA Davidson analyst William Appicelli maintained a Buy rating and $77.00 price target on Eversource Energy. Appicelli noted that the project could still meet its second half of 2026 start-up goal depending on how quickly concerns from the Bureau of Ocean Energy Management (BOEM) can be addressed [1].

References:
[1] https://www.investing.com/news/stock-market-news/eversource-energy-stock-falls-after-trump-administration-halts-orsteds-wind-farm-93CH-4209514
[2] https://www.tipranks.com/news/ratings/sell-rating-for-eversource-energy-amidst-revolution-wind-project-halt-and-offshore-wind-industry-uncertainties-ratings