CMS Energy stock price target raised to $74 from $68 at Mizuho

Investing.com - Mizuho (NYSE:MFG) raised its price target on CMS Energy (NYSE:CMS) to $74.00 from $68.00 on Monday, while maintaining a Neutral rating on the utility company’s stock. Currently trading near its 52-week high of $76.45, InvestingPro analysis indicates the stock appears overvalued at current levels.

The price target increase follows CMS Energy’s second-quarter 2025 adjusted earnings per share of $0.71, which exceeded the consensus estimate of $0.68. With a market capitalization of $22.38 billion and an impressive 18-year streak of consecutive dividend increases, CMS Energy has demonstrated consistent shareholder returns. The company reaffirmed its adjusted earnings per share growth at the high end of its 6-8% range.

CMS Energy announced an additional $5 billion in investments from its 2026 Integrated Resource Plan for new gas capacity and additional storage. This comes on top of the company’s previously disclosed $20 billion in long-term investments, split evenly between distribution and transmission. InvestingPro subscribers can access detailed financial health scores and 8 additional exclusive tips for CMS Energy.

The utility reached an agreement with a new data center expected to add 1 gigawatt of load, with the early ramp-up anticipated in the latter half of its five-year plan. This development represents positive momentum for CMS Energy’s 9-gigawatt pipeline.

Mizuho noted that CMS Energy’s renewable projects in the current five-year plan will largely remain unaffected by the OBBB and Executive Order, as the company is well positioned to meet timelines and requirements for full protection and tax credits.

In other recent news, CMS Energy has announced a quarterly dividend of 54.25 cents per share, payable on August 29, 2025, to shareholders of record as of August 8, 2025. Additionally, Consumers Energy, a subsidiary of CMS Energy, is set to upgrade 135 miles of natural gas pipelines in 15 Michigan communities this summer, involving over 600 employees and contractors. CMS Energy has also disclosed the pricing terms for a $147 million debt tender offer, purchasing Consumers Energy’s 2.500% First Mortgage Bonds due 2060 at a total consideration of $565.15 per $1,000 principal amount. KeyBanc has maintained its Overweight rating on CMS Energy stock, with a price target of $76.00, citing potential growth from new large load customers in Michigan. Furthermore, CMS Energy reported voting results from its annual meetings, where all board nominees were elected, and a shareholder proposal to enhance the ability to call special meetings was supported.

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