UBS Analyst Raises WEC Energy Group Price Target to $107.00

UBS analyst Ross Fowler has raised WEC Energy Group's (WEC) price target from $105 to $107, a 1.9% increase, while maintaining a "Neutral" rating. The average one-year target price for WEC is $109.60, with a high estimate of $124 and a low of $100. The average brokerage recommendation is 2.7, indicating a "Hold" status. GuruFocus estimates a GF Value of $95.76, suggesting a 9.5% downside from the current price.

UBS analyst Ross Fowler has adjusted the price target for WEC Energy Group (WEC) from $105 to $107, marking a 1.9% increase. Despite this upward revision, Fowler maintains a "Neutral" rating on the company's stock. This adjustment reflects an updated assessment of the company's valuation [1].

The average one-year target price for WEC, as forecasted by 13 analysts, is $109.60, with a high estimate of $124 and a low of $100. This average target implies an upside of 3.71% from the current price of $105.68 [1]. The average brokerage recommendation from 17 firms is 2.7, indicating a "Hold" status. GuruFocus estimates the GF Value for WEC in one year to be $95.76, suggesting a 9.39% downside from the current price [1].

WEC reported strong first quarter 2025 earnings of $2.27 per share, a $0.30 increase compared to the first quarter of 2024. The company is on track to meet its 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather conditions [1]. WEC is executing a $28 billion five-year investment plan aimed at economic growth and reliability, and has successfully navigated past periods of uncertainty and challenges [1].

However, the company's capital plan faces a tariff exposure of approximately 2% to 3%, which could impact supply chain and project costs. Additionally, WEC expects its day-to-day O&M expenses to grow 8% to 10% compared to 2024, driven by vegetation management and new assets. The company has not yet incorporated potential investments related to the Cloverleaf data center development into its capital plan, indicating uncertainty in future capital allocation [1].

In conclusion, UBS's upward revision of WEC's price target reflects a positive outlook on the company's valuation, supported by strong earnings and a significant investment plan. However, investors should be aware of potential challenges such as tariff exposure and increased O&M expenses.

References:
[1] https://www.gurufocus.com/news/2972132/wec-energy-wec-receives-target-price-increase-to-107-by-ubs-wec-stock-news