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On Wednesday, BMO Capital Markets adjusted its outlook on Duke Energy Corporation (NYSE:DUK), increasing the price target from $123.00 to $131.00, while reiterating an Outperform rating. The stock, currently trading near its 52-week high of $125.27, appears slightly overvalued according to InvestingPro Fair Value metrics. The revision followed Duke Energy’s first-quarter earnings per share (EPS) of $1.76, which surpassed both BMO’s and the consensus estimate of $1.62.
The company’s management confirmed their 2025 guidance, projecting an EPS range of $6.17 to $6.42 and maintaining their long-term EPS growth rate of 5-7%. With a strong track record of 17 consecutive years of dividend increases and a current yield of 3.4%, Duke Energy continues to demonstrate financial stability. In April, Duke Energy secured agreements with two data center customers for a total capacity of 1 gigawatt (GW). These contracts are part of the reason management is optimistic about an expected increase in load growth starting in 2027, with plans to update the related capital and financing strategy in their usual February update.
For the remainder of the year, several key developments are anticipated. These include the company’s Indiana Integrated Resource Plan (IRP), additional load agreements, the securitization of storm costs in the Carolinas, and adjustments related to the Inflation Reduction Act (IRA) and budget reconciliation process.
The analyst’s comments highlighted the company’s strong performance in the first quarter and the confidence of the management in the company’s growth prospects. With the reaffirmed guidance and the signing of significant agreements, Duke Energy seems well-positioned for the forecasted acceleration in load growth and the subsequent financial planning updates.
In other recent news, Duke Energy Corporation reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) of $1.76, surpassing analyst forecasts of $1.48. The company’s revenue also exceeded expectations, reaching $8.25 billion compared to the anticipated $7.81 billion. Duke Energy reaffirmed its 2025 earnings guidance range of $6.17 to $6.42 per share and maintained its long-term EPS growth target of 5% to 7% through 2029. Additionally, Jefferies analyst Julien Dumoulin-Smith raised the price target for Duke Energy stock from $133.00 to $138.00, maintaining a Buy rating. The analyst noted Duke Energy’s strong first-quarter performance and highlighted potential growth in its data center operations. The company is also planning a merger of its DC and DEP utilities, which is expected to generate significant customer savings. Duke Energy continues to focus on strategic investments, including a recent partnership with GE Vernova to secure natural gas turbines, aimed at meeting future customer demand.
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