UBS analyst William Appicelli reiterated a Hold rating on WEC Energy Group on September 2 and set a price target of $112.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
William Appicelli has given his Hold rating due to a combination of factors related to WEC Energy Group’s capital expenditure plans and growth projections. The company is expected to see a significant increase in its capital expenditure, with potential investments in the Vantage data center, pipeline replacement, and transmission spending. However, there is uncertainty regarding the timeline for the Vantage data center’s generation ramp, which could impact the overall growth trajectory.
Additionally, while WEC Energy Group’s growth rate could potentially increase to 7-8% from the current 6.5-7%, the stock is trading at a slight premium compared to its peers. This premium reflects the company’s strong execution and supportive regulatory environment, but the modest upside potential and uncertainties around capital ramp timing justify a Hold rating. The revised earnings estimates for 2027-2028 also support this cautious stance, as the stock’s valuation is seen as only modestly higher than warranted.
Appicelli covers the Utilities sector, focusing on stocks such as NextEra Energy, Talen Energy Corp, and DTE Energy. According to TipRanks, Appicelli has an average return of 14.5% and a 76.32% success rate on recommended stocks.