Eversource Energy (ES) is set to benefit from improving regulatory tone in Connecticut, Massachusetts, and New Hampshire, BofA Securities said in a note Tuesday.

"We see improving regulatory tone across ES' key jurisdictions, a path to balance sheet clarity, and a ~6% EPS growth through 2029 driving total return potential," the note said.

The report pointed to a regulatory reset in Connecticut, while stability in Massachusetts and New Hampshire is supporting steadier rate base growth and earnings visibility.

Eversource is also "nearing a cleaner balance sheet and improved funding flexibility" following the de-risking of the Revolution Wind project, the sale of Aquarion Water, and expected storm cost recovery, the report said.

BofA upgraded the stock to buy from neutral and lifted its price objective to $85 from $73.

Price: 73.96, Change: +1.11, Percent Change: +1.52