OGE Energy (OGE – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ross Fowler from Bank of America Securities reiterated a Hold rating on the stock and has a $46.00 price target.
Ross Fowler has given his Hold rating due to a combination of factors that reflect OGE Energy’s current market position and future prospects. The company’s strong execution and significant load growth opportunities have justified a premium valuation, which is already reflected in its current stock price. This premium is approximately 15% higher than its peers in the regulated SMID-cap electric utility sector, suggesting that much of the potential upside is already priced in.
Additionally, while OGE Energy has demonstrated impressive growth, particularly with an 8% increase in weather-normalized load growth and a substantial rise in commercial customer demand, the upcoming regulatory filings and rate cases are crucial for future performance. The company’s plans to address capacity needs through an RFP and the expected rate case filings in Oklahoma are pivotal. However, the anticipated earnings and capital expenditure plans suggest that the stock’s current valuation is appropriate, leading to the reaffirmation of a Hold rating.
According to TipRanks, Fowler is a 4-star analyst with an average return of 3.6% and a 59.89% success rate. Fowler covers the Utilities sector, focusing on stocks such as Northwestern, Consolidated Edison, and American Electric Power.
In another report released on May 5, Mizuho Securities also maintained a Hold rating on the stock with a $45.00 price target.