DTE Energy: Constructive Regulatory Tailwinds and Strategic Growth Drive Mid- to High-Single-Digit EPS Outlook and Upside to $155 Target

Bank of America Securities analyst Ross Fowler has reiterated their bullish stance on DTE stock, giving a Buy rating on January 28.

Ross Fowler has given his Buy rating due to a combination of factors that point to steady earnings growth and a supportive operating environment for DTE Energy. His projections call for fourth-quarter 2025 earnings per share that are essentially aligned with market expectations and marginally above the prior year, feeding into a 2025 full-year earnings outlook that is about 6% higher than 2024. He anticipates that favorable weather patterns, approved rate increases, and improved performance at the Vantage segment will drive this growth, even as higher depreciation, taxes, interest expense, and other costs weigh on results. Based on this profile, he continues to expect DTE to deliver an earnings growth rate in the mid- to high-single digits, leaning toward the upper end of that range.
Fowler also highlights strategic growth opportunities and a constructive regulatory framework as key reasons for maintaining a positive stance on the stock. The recently approved Oracle data center contract is seen as an early example of how large-scale projects can expand DTE’s investment base and potentially enhance earnings over time, with further data center deals representing additional upside. At the same time, he notes that upcoming decisions in the electric and gas rate cases, in a context of regulatory focus on customer affordability, are likely to reinforce visibility into future returns. Reflecting these dynamics and slightly higher peer group valuation multiples, he raises his price objective to $155, which implies meaningful upside from the current share price and supports his continued Buy recommendation.

In another report released on January 28, Jefferies also maintained a Buy rating on the stock with a $153.00 price target.