Analyst David Arcaro from Morgan Stanley maintained a Buy rating on DTE Energy and keeping the price target at $134.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight DTE Energy’s promising growth prospects. The company’s potential in the data center market is particularly noteworthy, with management targeting the finalization of contracts that could lead to approximately 1 GW of projects. This opportunity is supported by state leadership and could result in significant capital expenditure investments, which are expected to lower customer bills and enhance long-term generation capabilities.
Additionally, DTE Energy’s strategic plans, including the upcoming Integrated Resource Plan (IRP) filing in 2026, are set to incorporate these data center projects. This could lead to investments in new gas plants to replace retiring coal plants and meet future demands. Furthermore, DTE’s focus on capex investments and regulatory outcomes, along with secured equipment for renewable projects, provides a strong foundation for growth and stability, reinforcing the Buy recommendation.
Arcaro covers the Utilities sector, focusing on stocks such as Vistra Energy, Sempra Energy, and NextEra Energy. According to TipRanks, Arcaro has an average return of 14.0% and a 62.72% success rate on recommended stocks.
In another report released on July 9, Mizuho Securities also maintained a Buy rating on the stock with a $145.00 price target.