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Research Alert: CFRA Reiterates Hold Opinion On Shares Of New Jersey Resources Corporation

· 02/04/2021 14:20

07:15 PM EST, 02/04/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price by $3 to $39, 24.2x our FY 21 EPS estimate, a premium to NJR's historical forward average. We raise our FY 21 estimate to $1.61 from $1.60 and our FY 22 estimate to $2.10 from $2.08. NJR reports Dec-Q EPS of $0.46 vs. $0.44, equal to the S&P Capital IQ Consensus Estimate -- driven by Y/Y growth from New Jersey Natural Gas (NJNG) due to increased base rates from NJNG's fiscal 2020 rate case settlement, partially offset by a wider loss for Clean Energy Ventures (CEV) due to higher operations and maintenance ad lease expenses related to new projects placed in service. We anticipate additional growth in 2022 driven by NJR's new Asset Management Agreements (AMAs) at Energy Service segment signed in December 2020 in which NJR will deliver natural gas to a public utility in exchange for aggregate contracted fees of approximately $500 million payable in cash to Energy Services over 10 years.