CMS Energy (CMS – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst James Thalacker from BMO Capital reiterated a Buy rating on the stock and has a $73.00 price target.
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James Thalacker has given his Buy rating due to a combination of factors that highlight CMS Energy’s strong position and growth potential. The company has reported earnings per share (EPS) in line with expectations and has adjusted its 2025 guidance range slightly upward. The management has reaffirmed a long-term EPS growth outlook of 6-8%, expecting to be at the higher end of this range. Additionally, CMS Energy has increased its 5-year capital plan by 18% to $20 billion, primarily driven by investments in clean energy generation and distribution, which are expected to result in a robust 8.5% growth in the regulated asset base.
Furthermore, there are substantial long-term capital investment opportunities that extend beyond the current 5-year plan, which are poised to enhance the company’s growth trajectory. These include significant investments related to their reliability roadmap and renewable energy projects. The company’s financial strategies, including a manageable equity program and consistent regulatory execution, are also contributing to the positive outlook. Overall, CMS Energy’s above-average EPS and dividend growth rates, coupled with a supportive regulatory environment, make it an attractive investment at a discount to its historical valuation, justifying the Buy rating.
In another report released today, Scotiabank also maintained a Buy rating on the stock with a $77.00 price target.
CMS’s price has also changed slightly for the past six months – from $64.900 to $68.330, which is a 5.29% increase.