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NiSource Stock Rises as Investors Bet on Stability and Renewable Growth

A defensive play in turbulent times? NiSource's blend of gas upgrades and renewable energy wins over analysts—with price targets now hitting $32.

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NiSource Stock Rises as Investors Bet on Stability and Renewable Growth

NiSource, a utility company operating across several Midwest states, has drawn attention from investors seeking stability. Its stock, currently trading near $28.50, has climbed steadily over the past year, delivering gains of around 9 to 10 percent. Analysts now rate the shares as a buy or overweight, with price targets between $30 and $32.

Over the last five years, NiSource has navigated shifting regulatory landscapes. States like Indiana, Ohio, and Pennsylvania have tightened environmental rules under EPA guidelines and local laws, including Ohio's HB6 repeal and Pennsylvania's Act 129 updates. These changes delayed approvals for gas projects such as NiSource's Lebanon and Pendleton expansions in Indiana, which only gained clearance in 2023 after lengthy reviews. At the same time, new policies have pushed the company toward renewable energy integration, supported by federal measures like FERC Order 202.

Despite broader stock market concerns over rising interest rates, NiSource's stock has remained stable. Investors have viewed it as a defensive play, free from major scandals or unexpected setbacks. The company's focus on modernising gas infrastructure and expanding renewables has also bolstered confidence.

With a dividend yield of 3 to 4 percent, the total return for shareholders now sits in the mid-teens. However, future performance will hinge on several factors: the direction of U.S. interest rates, upcoming regulatory decisions, and NiSource's ability to carry out its planned investments effectively.

NiSource's stock has proven resilient, offering steady growth and reliable dividends. Its ability to adapt to stricter regulations and balance gas upgrades with renewable projects will shape its trajectory. For now, analysts remain optimistic, setting targets that suggest further upside potential.

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