DTE Energy Receives Buy Rating from Mizuho Securities with $145 Price Target

Mizuho Securities analyst Anthony Crowdell maintains a Buy rating on DTE Energy with a $145.00 price target. The company reported Q1 revenue of $4.44 billion and net profit of $445 million, compared to $3.24 billion revenue and $313 million net profit in the same period last year. The stock has a Moderate Buy consensus rating with an $145.09 average price target, a potential 11.38% upside from current levels.

Michigan's two largest energy providers, Detroit-based DTE Energy Co. and Jackson-based CMS Energy (parent company of Consumers Energy), reported earnings for the first quarter of 2023 on Thursday. Both companies faced significant challenges due to severe winter storms and warmer-than-usual weather, leading to decreased revenue and operating earnings.

DTE Energy reported operating earnings of $274 million for the first quarter, a decline of $174 million compared to the same period last year. The drop was primarily attributed to higher storm expenses and reduced electric use due to warmer weather. Jerry Norcia, president, CEO, and chairman of DTE Energy, called the late February ice storm and early March winter thundersnow "the most challenging two-week storm period we have ever faced as a company." The storm cost the utility about $70 million after taxes [1].

CMS Energy, on the other hand, reported $204 million in net income, down $149 million from the same period in 2022. The decline was also primarily due to similar reasons as DTE. Garrick Rochow, president and CEO of CMS Energy and Consumers Energy, noted that eight of the most destructive storms in the company's history have occurred in the last 20 years [1].

Both companies are taking steps to mitigate the financial impact of these storms. DTE has reduced its contractor workforce, limited overtime, and held off on some less time-critical work. CMS Energy is reducing costs by limiting hiring and reducing the use of consultants and contractors [1].

Despite the challenges, both companies reaffirmed their earnings per share guidance for the year. DTE's stock price rose slightly by 0.5% on Thursday, while CMS's stock price was up by 1.2%. Analysts remain optimistic about the companies' ability to weather future storms and maintain growth in Michigan's business landscape [1].

Mizuho Securities analyst Anthony Crowdell maintains a Buy rating on DTE Energy with a $145.00 price target. The company reported Q1 revenue of $4.44 billion and net profit of $445 million, compared to $3.24 billion revenue and $313 million net profit in the same period last year [2].

References:
[1] https://www.freep.com/story/money/business/michigan/2023/04/27/dte-consumers-report-first-quarter-earnings-2023/70157571007/
[2] https://stockanalysis.com/stocks/dte/