JPMorgan Raises New Jersey Resources Price Target to $56 After CapEx Plan
JPMorgan raised New Jersey Resources’ price target to $56 from $52 and upheld its Overweight rating. Management increased FY2026 NFEPS guidance by $0.25 to $3.28–$3.43 after strong winter energy performance and reaffirmed a $4.8–$5.2 billion CapEx plan through FY2030.
1. Broker Upgrade
JPMorgan lifted its price target on New Jersey Resources from $52 to $56 and maintained an Overweight rating, reflecting increased confidence in the company’s growth trajectory and valuation prospects.
2. Fiscal 2026 Guidance
During the Q1 FY2026 earnings call, management set initial NFEPS guidance at $3.03–$3.18 and then raised it by $0.25 to $3.28–$3.43, marking the sixth consecutive annual guidance increase and aligning with a long-term 7%–9% NFEPS growth target.
3. CapEx Plan and Growth Drivers
NJR reaffirmed a five-year $4.8–$5.2 billion capital expenditure plan through FY2030—about 40% above the prior period—with over 60% dedicated to New Jersey Natural Gas. Additional drivers include more than doubling Storage & Transportation earnings by 2027, expanding Leaf River capacity over 70% to 43 Bcf by 2028, and targeting 50% clean energy capacity growth in two years.
4. Financial Stability Measures
The balance sheet remains solid with projected adjusted FFO-to-debt near 20% over five years and no block equity issuance planned. Strategic hedging and customer affordability programs are expected to further stabilize earnings and support customer retention.