Duke Energy (DUK) Stock Forecast & Price Target

Duke Energy is positioned for significant growth, with expected capital expenditures increasing due to the filing of its updated Carolinas Resource Plan, highlighting strong investment in infrastructure. The company forecasts an average annual EPS growth rate exceeding 6.5%, indicating robust financial performance potential, particularly with management possibly revising these expectations upward. Additionally, a steady residential population growth of approximately 2% in key states, including the Carolinas, Florida, and Indiana, further supports the outlook for sustained demand and profitability.

Duke Energy's dividend growth is notably lagging behind its peers, averaging only approximately 2% per year, which raises concerns about the company's attractiveness to income-focused investors. Comparatively, peer utilities demonstrate a more robust dividend growth rate of around 5.5%, highlighting Duke Energy's underperformance in this critical area. This slower than average growth, coupled with broader market considerations referenced in related sector reports, contributes to a more cautious outlook on the utility's stock.