BofA Upgrades DTE Energy After Beat, Says Company Has Among Best Earnings Growth In Sector

DTE Energy Co 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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