Deutsche Bank Reiterates Its Hold Rating On DTE Following Earnings Release

DTE Energy DTE reported 4Q10 earnings largely in line with expectations and kept its long-term 5%-6% growth target intact. Deutsche Bank continues to expect DTE to earn its authorized 11% ROEs at the Michigan utilities through a combination of cost cutting and regular rate cases, which should drive earnings growth. At the non-utility segments, DB remains cautious as their contribution is less predictable and increases quarterly earnings volatility. DTE also narrowed their 2011 guidance range to $3.40-$3.70, down from $3.40- $3.80. An adjustment to the range was expected, as DTE filed an 8-K in December indicating that the steel industry fuels tax credit was not extended for 2011. Their previous guidance range had assumed an extension which contributed $0.12-$0.15 of EPS. DTE also noted that it is working to offset its 2012 equity needs as well and wants to begin monetizing its Barnett Shale assets after positioning them for a greater focus on liquids. Deutsche Bank has a $47 PT and Hold rating on DTE DTE is trading lower at $46.95