James Thalacker, an analyst from BMO Capital, maintained the Buy rating on Duke Energy. The associated price target remains the same with $131.00.
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James Thalacker has given his Buy rating due to a combination of factors including Duke Energy’s strategic sale of Piedmont’s Tennessee Natural Gas business, which is expected to de-risk the company’s equity funding requirements and support its substantial capital plan. The transaction, while anticipated, is seen as a positive step in reducing Duke’s debt and utilizing tax credits to offset tax liabilities, thereby enhancing financial flexibility.
Additionally, Thalacker views Duke’s asset recycling program favorably as it economically reduces equity funding needs and provides financing flexibility. The reaffirmation of Duke’s long-term EPS growth rate and the premium valuation of the sale further bolster confidence in the company’s financial health and strategic direction. The continued focus on renewable energy development and regulatory improvements in North Carolina also contribute to the positive outlook for Duke Energy’s stock.
Thalacker covers the Utilities sector, focusing on stocks such as American Electric Power, PPL, and Nisource. According to TipRanks, Thalacker has an average return of 14.6% and a 69.52% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $122.00 price target.