Duke Energy’s Strategic Investments and Growth Prospects Justify Buy Rating

In a report released today, Elizabelle Pang from DBS maintained a Buy rating on Duke Energy (DUK – Research Report), with a price target of $135.00.

Elizabelle Pang’s rating is based on Duke Energy’s strong financial performance and strategic investments. The company’s earnings for the fourth quarter and full year of 2024 were in line with expectations, showing a year-over-year growth of 10% and 6%, respectively. This steady financial growth is supported by Duke’s ambitious capital expenditure plan, which has been increased by 12%, signaling confidence in future growth prospects.
Moreover, Duke Energy’s focus on enhancing grid reliability and expanding its renewable energy portfolio positions it as a key player in the transition to sustainable energy. With plans to invest $73 billion over the next five years, half of which is dedicated to grid improvements, Duke is well-positioned to benefit from the increasing national focus on grid infrastructure. The company’s strategic initiatives, including potential investments in small modular reactors, further enhance its long-term growth outlook, justifying the Buy rating with a target price of $135.

In another report released on March 11, BMO Capital also maintained a Buy rating on the stock with a $128.00 price target.

Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DUK in relation to earlier this year.