Analyst James Thalacker from BMO Capital reiterated a Hold rating on Dominion Energy (D – Research Report) and keeping the price target at $59.00.
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James Thalacker has given his Hold rating due to a combination of factors relating to Dominion Energy’s current financial and strategic positioning. The company’s recent full-year earnings per share (EPS) came in slightly above consensus estimates, and they have narrowed their future guidance with a positive long-term growth outlook. Despite these favorable indicators, Thalacker maintains a cautious stance due to the need for further execution on key projects like the Coastal Virginia Offshore Wind (CVOW) project, which carries potential risks tied to federal policy changes.
Additionally, Dominion Energy’s capital expenditure plans have expanded significantly, with a notable portion directed towards essential areas like transmission and distribution. This increase in capital investment reflects positively on the rate base growth but also requires careful implementation to realize expected returns. Although the company’s strategic focus and improvements in its core fundamentals are commendable, the current valuation does not suggest an immediate opportunity for significant stock price appreciation. Thus, Thalacker believes a Hold rating is appropriate until more clarity on project execution and policy risks materializes.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $61.00 price target.