NiSource receives HSBC buy rating following major energy contracts

HSBC has initiated coverage of NiSource with a buy recommendation and a price target of $49.50. The rating follows significant long-term agreements involving electricity supply and battery storage.

NiSource recently entered a 20-year electricity supply agreement for a planned Microsoft campus in northwest Indiana. This project involves approximately 1,100 MW of generation resources and is expected to begin service in 2028. The deal is projected to result in total savings of approximately $1.75 billion for NIPSCO customers over the term of the data center contracts.

Additionally, NiSource Generation Company LLC has reached an agreement with Atlas Storage 1 LLC regarding the use of battery storage capacities. The company expects initial delivery and commissioning steps for the storage project by the end of 2027. NiSource is scheduled to release its third-quarter 2026 results on October 28.