Ryan Levine, an analyst from Citi, maintained the Buy rating on WEC Energy Group. The associated price target is $131.00.
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Ryan Levine’s rating is based on several compelling factors that highlight the potential growth and stability of WEC Energy Group. One primary reason is the anticipated growth in datacenters, which is expected to significantly boost WEC’s earnings in Wisconsin. The company is strategically positioned to capitalize on this opportunity through its existing relationships with major tech firms like Microsoft and Oracle, as well as its infrastructure and political support in the region. Additionally, WEC is set to benefit from an accelerated pipeline replacement program for People’s Gas, which is projected to enhance earnings per share by approximately 3% through 2030.
Moreover, Levine points out the favorable regulatory environment that WEC operates in, which is likely to improve further. This includes potential regulatory approval for a return on equity adder for large load customers, such as datacenters, by 2026. Furthermore, WEC is expected to announce a substantial increase in its capital expenditure outlook, which could further drive growth. These factors, combined with a robust valuation approach and an expected share price return of 16.9%, underpin Levine’s Buy rating on WEC Energy Group.
Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WEC in relation to earlier this year.