Guggenheim Reiterates Buy Rating on DTE Energy (DTE) as MPSC Order Approves 48% of Revenue Request

Guggenheim analyst Shahriar Pourreza reiterated a Buy rating and $135.00 price target on DTE Energy (NYSE: DTE)

The analyst commented, "MPSC issued an order approving a 52% reduction to DTE Electric rate case revenue request, more punitive than the MPSC Staff position. The devil’s in the details of the order, which re-cuts several aspects of the request. The MPSC did not implement an ROE reduction to 9.8% to align DTE Electric and Gas ROEs. The revenue approval is below what the company initially filed as the required return on invested capital, but the order comes with a reduction to rate base. While we do see the order confirming our more risky outlook for MI in 2025, the silver lining remains with DTE’s relative valuation. The MPSC also noted the continued work on the third party storm audit and associated recommendations, which may be able to alleviate some of the pressure in subsequent recovery filings as the Commission expects it will inform future spending"

For an analyst ratings summary and ratings history on DTE Energy click here. For more ratings news on DTE Energy click here.

Shares of DTE Energy closed at $120.23 yesterday.

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