BMO Capital lifts DTE Energy stock target to $125

Monday, DTE Energy (NYSE:DTE) shares, currently trading at $119.10 with a market capitalization of $24.67 billion, saw their price target increased by BMO Capital Markets from $122.00 to $125.00 while the firm maintained a Market Perform rating on the stock. According to InvestingPro analysis, DTE is currently trading at a low P/E ratio relative to its near-term earnings growth potential. BMO Capital's analyst cited the Michigan Public Service Commission's (MPSC) final order in DTE Electric's General Rate Case (GRC), which approved a $217.4 million revenue increase. This approval is backed by an unchanged 9.9% Return on Equity (ROE) and a 50% equity ratio, along with a slightly reduced $21.79 billion rate base. Notably, DTE Energy has maintained dividend payments for 54 consecutive years, currently offering a 3.66% yield. Get more valuable insights about DTE's financial health and growth prospects with a InvestingPro subscription.

The decision was noted to be slightly below the Staff's position, which was believed to be aligned with the consensus expectation. According to the analyst, the outcome is manageable, but the attention of investors is expected to shift towards the Administrative Law Judge's Proposal for Decision (PD) in CMS Energy (NYSE:CMS)'s rate case, which is anticipated to provide further insights into Michigan's regulatory environment.

BMO Capital's analyst has adjusted the mark-to-market Sum of the Parts (SOTP) target price for DTE Energy to reflect the new developments from the MPSC's final order. The firm's stance remains at Market Perform, indicating a neutral outlook on the stock's near-term performance.

The MPSC's decision and the forthcoming PD in CMS's rate case are both considered key factors in evaluating the regulatory climate in Michigan, which can have significant implications for utility companies operating within the state. DTE Energy, as a major utility player in Michigan, will likely be impacted by these regulatory assessments and their outcomes. With analyst price targets ranging from $122 to $147 and an overall consensus recommendation of 1.95 (Buy), detailed analysis and additional insights are available in DTE's comprehensive Pro Research Report on InvestingPro.

In other recent news, DTE Energy has been the subject of notable analyst actions and financial advancements. Guggenheim maintained a Buy rating on DTE Energy's stock with a $135 target, despite the Michigan Public Service Commission's (MPSC) decision to reduce a rate case revenue request from DTE Electric. Evercore ISI also confirmed an Outperform rating for DTE Energy with a steady price target of $136, following the MPSC's approval of a $217 million rate increase for the company. However, KeyBanc Capital Markets downgraded DTE Energy from Overweight to Sector Weight due to concerns about the Michigan market.

UBS and Citi have upgraded their price targets for DTE Energy to $143 and $142 respectively, mainly due to DTE Energy's strong third-quarter results, which featured an adjusted earnings per share of $2.22 and operating earnings of $460 million. In addition to these financial advancements, DTE Energy has declared a quarterly dividend of $1.09 per share, continuing its 54-year streak of dividend payments. The company also launched the Sauk Solar park, Michigan's largest solar installation, demonstrating its commitment to renewable energy. These are among the recent developments for DTE Energy.

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