KeyBanc analyst Sophie Karp downgrades $DTE Energy (DTE.US)$ to a hold rating, and maintains the target price at $138.
According to TipRanks data, the analyst has a success rate of 56.0% and a total average return of 5.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $DTE Energy (DTE.US)$'s main analysts recently are as follows:
The company benefits from a top-tier regulation environment in Michigan, shows promising utility earnings growth of 6.9%, enjoys advantages from Section 45z tax credits, and has a minimal requirement for equity. Currently, the stock is trading at a 7% discount compared to the usual utility group, contrasting with its average 3% premium over the past five years.
DTE Energy, despite its fundamentally strong utility status and appealing business portfolio, has faced investor unease due to recent regulatory decisions in Michigan. The trend of gradually diminishing returns on equity and the equity layer, as seen in the latest rulings, seems inopportunely timed given current capital market conditions.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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