Analyst Neil Kalton of Wells Fargo assigned a Buy rating on DTE Energy (DTE – Research Report), boosting the price target to $125.00.
Neil Kalton has given his Buy rating due to a combination of factors including DTE Energy’s robust performance and positive future outlook. After experiencing an earnings per share (EPS) miss in the previous year, DTE has shown a strong recovery, with a healthy increase in operating EPS year-over-year. The company’s core plan, which focuses on both reliable service delivery and investment in the energy transition, is considered to be a key driver for its future growth. Additionally, there is potential for further upside from load growth, which remains an optimistic point for the company’s future performance.
Kalton’s confidence in DTE is further supported by several key elements such as the expected steady increase in EPS growth potential, a supportive regulatory environment, and a considerable capital expenditure plan that includes significant grid hardening efforts. DTE’s shares are trading at a slight premium compared to its peers, yet Kalton believes an expansion in the multiple is justified due to the company’s higher growth potential and the other aforementioned factors. Moreover, the low risk of wildfires and minimal external equity needs contribute to the attractive investment profile of DTE Energy, reinforcing Kalton’s Buy rating.
In another report released on April 23, Morgan Stanley also maintained a Buy rating on the stock with a $108.00 price target.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DTE in relation to earlier this year.
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DTE Energy (DTE) Company Description:
Michigan-based DTE Energy Co. is a diversified energy company, which provides electricity and natural gas sales, distribution and storage services. It operates through the following divisions: Electric, Gas, Gas Storage and Pipelines, and Power and Industrial Projects.
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