DTE Energy Co (NYSE:DTE) reported its fiscal 2021 results ahead of expectations, raised its 2022 earnings guidance range and provided a “strong affirmation of the long-term growth trajectory,” according to BofA Securities.
The DTE Energy Analyst: Julien Dumoulin-Smith upgraded the rating for DTE Energy from Underperform to Buy, while raising the price target from $111 to $127.
The DTE Energy Thesis: The company has among the best earnings growth in the sector, Dumoulin-Smith said in the upgrade note.
“Mgmt. framed its expectations as near the upper-end of its existing 5-7% range looking ahead, consistent with our estimates – accordingly we see a move to a 6-8% target range as likely following the refresh of DTE’s 5-year capital plan and outlook expected during the Q3 / Edison Electric Institute (EEI) conference in November,” the analyst wrote.
“If this catalyst materializes, this would formally elevate DTE to be one of the few regulated utility companies with a 7% CAGR midpoint, garnering a premium valuation despite lingering business mix concerns,” he added.
DTE Price Action: Shares of DTE Energy had risen by 0.77% to $116.98 at the time of publication Tuesday.
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