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On Wednesday, Jefferies analyst Julian Dumoulin-Smith adjusted the price target for DTE Energy (NYSE:DTE), increasing it to $148.00 from the prior $146.00 while maintaining a Hold rating on the company’s shares. The modification follows a positive first quarter in 2025 and encouraging discussions at the American Gas conference. According to InvestingPro data, DTE is currently trading near its 52-week high of $140.39, with a robust year-to-date return of 14.48%. The stock has attracted attention from analysts, with three recently revising their earnings estimates upward for the upcoming period. Dumoulin-Smith noted the improvement in the company’s financial outlook, stating that the revision in estimates is backed by heightened confidence in capital expenditures related to data centers and the anticipated continuity of 45Z tax credits through the budget bill.
DTE Energy’s stock, with a market capitalization of $28.45 billion, is currently valued at approximately a 5% premium compared to the 2027 group average price-to-earnings ratio. Trading at a P/E ratio of 18.58x and a favorable PEG ratio of 0.89, it shows a marginal 2% discount when compared to its peer CMS Energy (NYSE:CMS). Despite the improved estimates and the overall positive outlook for the company, the analyst has chosen to maintain a Hold rating. InvestingPro analysis indicates that DTE is currently trading above its Fair Value, suggesting careful consideration for new positions. This decision reflects a cautious stance due to the limited upside potential associated with the mix of regulated and unregulated earnings and the ongoing regulatory risks that the company faces.
The analyst elaborated on the factors influencing the decision to retain the Hold rating. He highlighted that while the company’s narrative and projections have clearly advanced, the potential for stock price appreciation is seen as less compelling. This perspective takes into account the composition of DTE Energy’s earnings, which include a mix of regulated and unregulated segments, and the persistent regulatory challenges within the energy sector.
DTE Energy’s financial performance in the first quarter of 2025 and its strategic moves discussed at the American Gas conference have contributed to a more robust financial forecast. The analyst’s comments suggest that the firm’s strategic planning and execution are yielding positive results, as evidenced by the improved confidence in investment in data centers and the stability provided by tax credits.
The updated price target reflects a nuanced view of DTE Energy’s position in the market, taking into account both the company’s recent performance and the broader industry context. With the new price target set at $148.00, Jefferies signals a slight adjustment in the valuation of DTE Energy’s stock, while also acknowledging the ongoing challenges that may temper the stock’s growth prospects. Notable strengths include the company’s impressive 55-year track record of consecutive dividend payments and strong revenue growth of 11.89% in the last twelve months. For deeper insights into DTE’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to detailed financial metrics, Fair Value calculations, and expert research reports.
In other recent news, DTE Energy reported robust financial results for the first quarter of 2025, with earnings per share (EPS) reaching $2.14, surpassing the expected $1.91. The company’s revenue also exceeded forecasts, totaling $3.37 billion against a projected $3.33 billion. These results reflect strong performance across DTE Energy’s segments, including the electric and gas divisions, which contributed significantly to operating earnings. Additionally, DTE Advantage reported a notable increase in earnings, driven by higher renewable natural gas (RNG) earnings and production tax credits.
DTE Energy’s shareholders recently approved the 2025 Long-Term Incentive Plan (LTIP), allowing for the issuance of up to 3 million shares of common stock. This plan aims to grant awards to eligible employees and board members. Shareholders also ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. Furthermore, all director nominees were elected for a one-year term expiring in 2026.
Looking ahead, DTE Energy plans substantial investments in renewable energy, aligning with its strategic growth objectives. The company has set an ambitious operating EPS guidance for 2025, indicating projected growth. In another development, the company has been actively involved in discussions regarding data center opportunities, which could provide additional upside to its five-year plan. DTE Energy remains focused on maintaining a strong balance sheet and delivering premium shareholder returns.
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