Analyst James Thalacker of BMO Capital reiterated a Hold rating on DTE Energy, with a price target of $140.00.
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James Thalacker has given his Hold rating due to a combination of factors influencing DTE Energy’s current and future performance. The company’s second-quarter earnings per share were slightly below expectations, but management remains confident in achieving the high end of its full-year guidance. This confidence is supported by ongoing discussions with data centers for significant energy load increases and clarity on tax credits through 2029.
Despite these positive indicators, there are concerns about the company’s long-term growth rate, which management does not intend to exceed beyond its current 6-8% target. The market’s reaction to these growth rate comments likely contributed to the underperformance of DTE shares. Additionally, while DTE shares trade below their historical premium, they are expected to remain stable as the company works on executing its full-year guidance and navigates regulatory challenges. These factors collectively justify the Hold rating, as the stock is anticipated to trade within a narrow range in the near term.
In another report released on July 15, J.P. Morgan also maintained a Hold rating on the stock with a $147.00 price target.
DTE’s price has also changed moderately for the past six months – from $117.600 to $137.100, which is a 16.58% increase.