DTE Energy (DTE) Stock Forecast & Price Target

DTE Energy forecasts a robust EPS growth of 6%-8%, with a confident outlook of achieving the higher end of this range between 2025-2027, largely driven by renewable natural gas (RNG) tax credits which position it for faster growth compared to sector peers. The company possesses approximately 1GW of existing excess generation capacity, enabling quick market responsiveness and the ability to meet growing demand, which could enhance its capital expenditure plans. Additionally, the potential for incremental capacity needs and favorable underlying trends further support a positive financial outlook for DTE Energy's stock.

DTE Energy's stock faces a negative outlook primarily due to the company's recent earnings per share (EPS) performance, which missed its original guidance midpoint for 2023, suggesting potential challenges in future profitability. Additionally, while the utility has historically exceeded earnings expectations, the long-term trend of under-promising and over-delivering raises concerns about sustainability in changing market conditions, especially in a state that lags in attracting data center customers. Lastly, the reliance on two regulated utilities that contribute 90% of earnings makes DTE particularly vulnerable to segment-specific downturns, which could adversely impact overall growth and investor sentiment.