Mizuho maintains Outperform rating on DTE Energy stock amid rate case

Published 09/07/2025, 11:52
Mizuho maintains Outperform rating on DTE Energy stock amid rate case

Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $145.00 price target on DTE Energy (NYSE:DTE) stock, citing the utility’s pending rate case and leadership transition. According to InvestingPro data, analyst targets range from $125 to $154, with DTE currently trading at a P/E ratio of 17.7x and maintaining a 55-year track record of consecutive dividend payments.

DTE Energy filed for a $547 million electric rate increase in April, requesting a 10.75% return on equity and 36.69% equity ratio to support grid modernization, decarbonization, and reliability investments. The company’s financial health score is rated as "GOOD" by InvestingPro, with revenue growing nearly 12% over the last twelve months to $13.7 billion.

Mizuho believes this filing is better positioned for a constructive result compared to DTE’s previous rate cases, noting stronger support and closer alignment with commission priorities.

The firm also highlighted DTE’s upcoming leadership change, as the company announced on June 23 that Joi M. Harris, current COO and President, will replace Jerry Norcia as CEO effective September 8, 2025.

Mizuho expressed confidence in Harris’s leadership capabilities, pointing to her 18+ years of experience at DTE, including two years as COO and President of DTE Energy.

In other recent news, DTE Energy reported robust financial results for the first quarter of 2025, exceeding analyst expectations with earnings per share (EPS) of $2.14, above the anticipated $1.91. Revenue also surpassed forecasts, reaching $3.37 billion compared to the projected $3.33 billion. Shareholders have approved DTE Energy’s 2025 Long-Term Incentive Plan, allowing the issuance of up to 3 million shares of common stock. Additionally, Jefferies has adjusted its price target for DTE Energy, increasing it to $148 from $146, while maintaining a Hold rating. The analyst firm cited improved financial outlooks and strategic investments as reasons for the adjustment. DTE Energy has also announced a leadership change, with Joi Harris set to become President and CEO in September 2025. The company continues to focus on grid reliability and renewable energy investments, which have been key contributors to its strong performance.

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