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Investing.com - BMO Capital has raised its price target on DTE Energy (NYSE:DTE) to $144.00 from $140.00 while maintaining a Market Perform rating on the utility company’s stock. The utility giant, with a market capitalization of $28.75 billion, currently trades at $138.54, near its 52-week high of $142.05. According to InvestingPro data, the company has maintained dividend payments for an impressive 55 consecutive years.
The price target increase follows a brief sell-off in DTE shares on Friday after staff testimony was posted in the company’s electric rate case.
BMO Capital views the initial position in the rate case as "better than the implied headline and constructive in parts," noting staff support for extending the Infrastructure Recovery Mechanism (IRM) at increasing levels, which represents a notable improvement from their position in the previous rate case.
The firm pointed out that while the 9.80% recommended Return on Equity (ROE) is below the currently authorized 9.90%, it is consistent with staff’s 2023 Electric case recommendation.
The price target adjustment to $144 from $140 reflects refreshed mark-to-market multiples in BMO’s sum-of-the-parts valuation model for DTE Energy.
In other recent news, DTE Energy reported its second-quarter 2025 earnings, with operating earnings of $283 million or $1.36 per share, missing analysts’ expectations of $1.48 per share. The company’s revenue forecast for the quarter was $2.65 billion, though the actual revenue figures were not disclosed. Mizuho raised its price target for DTE Energy to $151.00 from $145.00, maintaining an Outperform rating, citing growth potential in the data center sector. The earnings miss was attributed to a tax adjustment, which Mizuho expects to reverse in the second half of 2025. UBS reiterated its Buy rating with a price target of $148.00 despite concerns about a Michigan Public Service Commission Staff recommendation. The recommendation suggested a rate base 98% of DTE’s request, approximately $0.5 billion less than proposed. These developments highlight ongoing financial and regulatory challenges for the company.
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