Ross Fowler, an analyst from Bank of America Securities, reiterated the Buy rating on CMS Energy (CMS – Research Report). The associated price target is $80.00.
Ross Fowler has given his Buy rating due to a combination of factors, primarily the constructive regulatory environment in which CMS Energy operates. The Michigan Public Service Commission’s recent unanimous approval of a revenue increase and a favorable return on equity indicates a supportive stance towards the company’s growth plans. This regulatory approval not only aligns with CMS’s strategic objectives but also enhances the company’s ability to invest in infrastructure and vegetation management, which are crucial for its long-term operational efficiency.
Furthermore, Fowler maintains confidence in CMS Energy’s earnings potential, as evidenced by the alignment of EPS estimates with both consensus and company guidance. The decision to raise the price objective to $80 reflects an updated peer multiple, suggesting a positive outlook on the company’s valuation. With an anticipated 12-month return of 11.6%, the Buy rating underscores the belief in CMS Energy’s capacity to deliver shareholder value within a stable regulatory framework.
According to TipRanks, Fowler is a 3-star analyst with an average return of 2.5% and a 57.14% success rate. Fowler covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, American Electric Power, and Consolidated Edison.
In another report released on March 18, Barclays also maintained a Buy rating on the stock with a $75.00 price target.