OGE Energy: Strong Growth Potential and Strategic Execution Drive Buy Rating

Analyst Julien Dumoulin Smith from Jefferies maintained a Buy rating on OGE Energy (OGE – Research Report) and keeping the price target at $52.00.

Julien Dumoulin Smith has given his Buy rating due to a combination of factors that highlight OGE Energy’s strong growth potential and strategic execution. The company has demonstrated a robust start to the year with a first-quarter performance that exceeded expectations, aligning with management’s plan for fiscal year 2025. This positive momentum is supported by anticipated filings for integrated resource plan (IRP) and request for proposal (RFP) capacity, which are expected to drive investment opportunities and earnings per share (EPS) growth.
Moreover, OGE Energy’s strategic investments, including a $1.6 billion RFP generation capacity and $600 million in data center capacity, are projected to enhance its rate base growth significantly. The company’s load growth, particularly in the residential and commercial sectors, further underscores its potential for sustained expansion. Despite potential credit rating challenges, OGE’s management remains confident in its financial strength and leverage targets, positioning the company well for future growth. These factors, combined with a compelling price target and upcoming catalysts, make OGE Energy an attractive investment opportunity.

According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 2.3% and a 53.09% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Ormat Techno, and OGE Energy.