12:56 PM EDT, 06/25/2024 (MT Newswires) -- Eversource Energy ( ES ) faces three key stock performance hurdles, including a "weak balance sheet, projected EPS growth at the low end of guidance and need to improve regulatory outcomes" in Connecticut, BofA Securities said Tuesday in an emailed note.

"Eversource's ongoing regulatory treatment by [Public Utilities Regulation Authority] remains the key consideration among investors," the investment firm said in the note.

The company's ratio of funds from operations to debt currently ranges from 10% to 13% but potential actions such as Aquarion Water sale, reversing a charge related to Sunrise Wind, and additional equity issuances could help Eversource achieve its goal of 14% to 15% by 2025, BofA said.

The firm said it forecasts a "below-average" earnings per share growth rate of 5.1% through 2028, citing a decline in base earnings from Connecticut Light & Power.

BofA upgraded its rating on Eversource's stock to neutral from underperform and reiterated a price target of $61.

Shares of Eversource were down 1.4% in recent Tuesday trading.

Price: 57.25, Change: -0.76, Percent Change: -1.30