BMO Capital Raises DTE Energy Price Target to $144

BMO Capital raised its price target on DTE Energy to $144 from $140 and maintains a Market Perform rating. The analyst views the staff testimony in the company's electric rate case as constructive, particularly in extending the infrastructure recovery mechanism at increasing levels. Despite a brief sell-off, the firm sees the initial position as better than the implied headline.

BMO Capital has raised its price target on DTE Energy (NYSE: DTE) to $144.00 from $140.00, while maintaining a Market Perform rating on the utility company’s stock. The utility giant, with a market capitalization of $28.75 billion, currently trades at $138.54, near its 52-week high of $142.05 [1].

The price target increase follows a brief sell-off in DTE shares on Friday after staff testimony was posted in the company’s electric rate case. BMO Capital views the initial position in the rate case as "better than the implied headline and constructive in parts," noting staff support for extending the Infrastructure Recovery Mechanism (IRM) at increasing levels [1]. This represents a notable improvement from their position in the previous rate case.

The firm pointed out that while the 9.80% recommended Return on Equity (ROE) is below the currently authorized 9.90%, it is consistent with staff’s 2023 Electric case recommendation [1]. The price target adjustment to $144 from $140 reflects refreshed mark-to-market multiples in BMO’s sum-of-the-parts valuation model for DTE Energy [1].

In other recent news, DTE Energy reported its second-quarter 2025 earnings, with operating earnings of $283 million or $1.36 per share, missing analysts’ expectations of $1.48 per share. The company’s revenue forecast for the quarter was $2.65 billion, though the actual revenue figures were not disclosed [1]. Mizuho raised its price target for DTE Energy to $151.00 from $145.00, maintaining an Outperform rating, citing growth potential in the data center sector [1]. The earnings miss was attributed to a tax adjustment, which Mizuho expects to reverse in the second half of 2025. UBS reiterated its Buy rating with a price target of $148.00 despite concerns about a Michigan Public Service Commission Staff recommendation [1].

These developments highlight ongoing financial and regulatory challenges for the company. BMO Capital’s latest assessment reflects a cautious yet constructive view of DTE Energy’s prospects, particularly in the context of the company’s ongoing electric rate case and potential for IRM extension.

References:
[1] https://www.investing.com/news/analyst-ratings/dte-energy-stock-price-target-raised-to-144-from-140-at-bmo-capital-93CH-4209361