Guggenheim raises DTE Energy stock target to $147, maintains buy

On Thursday, Guggenheim Securities adjusted its outlook on DTE Energy (NYSE:DTE), a Detroit-based diversified energy company with a market capitalization of $28.4 billion, raising the firm’s price target to $147 from $139 while reiterating a Buy rating on the stock. The revision reflects positive expectations concerning the company’s strategic plan and growth prospects. The stock currently trades at $136.94, near its 52-week high of $136.76. According to InvestingPro analysis, DTE Energy appears to be fairly valued at current levels.

Shahriar Pourreza, an analyst at Guggenheim, noted the strong guidance provided by DTE Energy’s management, indicating confidence in achieving the upper end of the earnings per share (EPS) guidance. The company’s strong performance is reflected in its impressive 13.69% year-to-date return and consistent dividend payments, which it has maintained for 55 consecutive years, currently yielding 3.2%. Management’s discussions suggest the possibility of growth surpassing the 6-8% compound annual growth rate (CAGR) initially forecasted, particularly with the anticipation of at least one data center announcement by the end of the year. The potential integration of approximately 2.1 gigawatts (GW) of capacity could further bolster this growth trajectory.

The analyst highlighted the near-term benefits of open capacity on DTE Energy’s system, which is expected to accommodate data center demand and provide financial flexibility for other projects. Over the medium and long term, the company may need to increase spending on generation and transmission to meet the needs of data centers and hyperscalers. Pourreza pointed out that funding for this higher capital expenditure could be sourced from the sale of non-utility assets at DTE’s subsidiary, Vantage.

Regulatory developments are also a key consideration for the company’s outlook. DTE Energy is expected to file new gas and electric cases later in 2025. The company’s CEO has expressed comfort with the regulatory environment in Michigan, and investors are keenly awaiting the CMS order tomorrow to confirm management’s sentiments.

In summary, Guggenheim’s revised price target and maintained Buy rating reflect a positive view of DTE Energy’s strategic initiatives, growth potential, and ability to navigate the regulatory landscape. Trading at a P/E ratio of 20.17, the stock has demonstrated strong momentum. For deeper insights into DTE Energy’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Deutsche Telekom (OTC:DTEGY) reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company achieved a revenue of $3.43 billion, surpassing expectations by $260 million, although earnings per share fell short at $1.51 compared to the forecasted $1.57. Deutsche Telekom’s record levels of EBITDA, free cash flow, and adjusted earnings highlighted robust operational execution. Meanwhile, DTE Energy disclosed the financial statements for its subsidiary, DTE Gas Company, for the year ended December 31, 2024. These statements were made available on DTE Energy’s website and incorporated into the SEC filing. The company emphasized that the Form 8-K contains forward-looking statements subject to risks and uncertainties, advising that these should be read in conjunction with other SEC reports. Additionally, Deutsche Telekom set ambitious targets for 2025, including an EBITDA guidance of €44.9 billion, as noted by CEO Tim Hoeutgers during the earnings call.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.