DTE Energy (DTE) Stock Forecast & Price Target

DTE Energy's stock outlook is bolstered by a robust five-year capital expenditure plan, now totaling $36.5 billion, which reflects a 22% increase aimed at enhancing generation capacity and compliance with state regulations. Management's guidance of 6%-8% earnings per share (EPS) growth, with aspirations to achieve the higher end thanks to renewable natural gas tax credits, positions DTE Energy for faster growth compared to its peers. Additionally, the company’s existing one gigawatt of excess generation capacity provides a strategic advantage in meeting rising customer demand, including contracts related to data centers, further underpinning its financial stability and growth potential.

DTE Energy’s management has set a target for a Funds From Operations (FFO) to debt ratio of around 15%, which, although modestly lower than the previous range, remains above downgrade thresholds, indicating potential financial strain. The company's 2026 earnings per share (EPS) guidance has fallen short of both prior estimates and consensus forecasts, with a downward revision in long-term estimates reflecting concern over flat Vantage earnings post-2029 due to expiring tax credits. Furthermore, the company’s dependence on a peer-average equity financing strategy rather than a unique position, coupled with Michigan's slower growth in data center customers compared to manufacturing, contributes to a negative outlook for DTE Energy's stock.