Credit Suisse Upgrades Dominion Energy On Valuation

Dominion Energy Inc D undertook a number of positive strategic steps this year to significantly reduce its operating and financial risk, according to Credit Suisse.

The Dominion Energy Analyst: Michael Weinstein upgraded Dominion Energy to Outperform, while keeping the price target unchanged at $83.

The Dominion Energy Thesis: Following its strategic initiatives, the company now has a “simplified large-cap regulated growth story for the next decade driven by nearly $8B of regulated offshore wind, additional land-based renewables, transportation electrification, and strong customer and datacenter growth in Virginia,” Weinstein said in the note.

Management has guided to more than 10% growth in earnings per share for 2021, supported by $3.1 billion of share buybacks, and projects over 6.5% earnings growth for 2022 and beyond.

The analyst said Dominion Energy’s current share price offers a “compelling entry point,” while adding that there is “14% total return potential over the next 12 months” at the company’s current pricing.

D Price Action: Shares of Dominion Energy had risen by 1.3% to $76.27 at the time of publication Thursday.