DTE Energy (DTE) Stock Forecast & Price Target

DTE Energy's positive outlook is underpinned by a substantial 22% increase in its five-year capital expenditure plan, raising it to $36.5 billion, which is expected to enhance service capabilities and meet growing customer demand. The company projects a robust earnings per share (EPS) growth rate of 6% to 8%, with an emphasis on reaching the higher end of this range from 2025 to 2027, bolstered by renewable natural gas (RNG) tax credits that position DTE among the fastest growers in the sector. Additionally, DTE's existing excess generation capacity of approximately 1 gigawatt provides strategic advantages in meeting new demand efficiently and may lead to further upside in their capital expenditure strategy.

DTE Energy's management has revised its target FFO/debt ratio to approximately 15%, a modest decrease that, while above downgrade thresholds, indicates potential financial strain. Additionally, the company’s 2026 EPS guidance is weaker than both previous estimates and consensus forecasts, which has led to a downward revision in earnings projections for both 2026 and subsequent years. Furthermore, the lag in attracting data center customers in Michigan may also contribute to a negative market sentiment surrounding DTE Energy's growth prospects.