Analyst Carly Davenport of Goldman Sachs reiterated a Buy rating on Duke Energy, boosting the price target to $133.00.
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Carly Davenport’s rating is based on Duke Energy’s strategic decision to sell its Tennessee Piedmont Natural Gas business for $2.48 billion in cash. This transaction is anticipated to help Duke Energy reduce its debt and fund its capital expenditure plans, which total $83 billion. The sale is expected to be earnings-neutral but slightly positive, with a projected 0.3% EPS accretion from 2027 to 2029.
The deal’s proceeds will also diminish the company’s need for equity issuance, thereby potentially enhancing shareholder value. Although the transaction requires regulatory approval and is expected to close in the first quarter of 2026, the strategic use of existing tax credits will mitigate cash tax liabilities. Overall, these factors contribute to a positive outlook for Duke Energy, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $122.00 price target.
DUK’s price has also changed slightly for the past six months – from $110.620 to $119.490, which is a 8.02% increase.