KeyBanc Upgrades DTE Energy (DTE) to Buy
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Price: $110.12 +1.43%
Rating Summary:
15 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
Rating Summary:
15 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
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KeyBanc upgraded DTE Energy (NYSE: DTE) from Hold to Buy with a price target of $83.00.
Analyst Matt Tucker said, "Our more positive stance is largely predicated on three key factors: 1) Policy. We assess the ongoing energy reform in Michigan and upcoming gubernatorial elections have served as an overhang for DTE’s stock, generating concern that policy changes could result in a less constructive regulatory environment, with fears over electric deregulation at the forefront. We view these concerns as overblown and see little risk to DTE from policy reform or a change in the governor’s office. Further, we think maintaining the status quo 10% choice cap is the most likely outcome, view further deregulation as highly unlikely and believe a return to full regulation is the second most likely outcome, which we would view as a significant positive. 2) Midstream. We expect continued prolific growth in DTE’s Bluestone system in the Marcellus and expect an agreement for additional acreage dedication to provide a catalyst at some point this year. Additionally, we anticipate that DTE and its partners will secure enough commitments to move forward with the major NEXUS pipeline project, providing another significant catalyst and bringing a potential midstream MLP closer to reality. 3) Weather. We think the significantly colder than normal 1Q weather has provided a strong start to 2014 earnings, as well as enabling DTE to build goodwill with regulators and customers by delaying RDM liability income and pushing out its planned Electric GRC by at least six months while maintaining 2014 guidance."
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 $73.19 yesterday.
Analyst Matt Tucker said, "Our more positive stance is largely predicated on three key factors: 1) Policy. We assess the ongoing energy reform in Michigan and upcoming gubernatorial elections have served as an overhang for DTE’s stock, generating concern that policy changes could result in a less constructive regulatory environment, with fears over electric deregulation at the forefront. We view these concerns as overblown and see little risk to DTE from policy reform or a change in the governor’s office. Further, we think maintaining the status quo 10% choice cap is the most likely outcome, view further deregulation as highly unlikely and believe a return to full regulation is the second most likely outcome, which we would view as a significant positive. 2) Midstream. We expect continued prolific growth in DTE’s Bluestone system in the Marcellus and expect an agreement for additional acreage dedication to provide a catalyst at some point this year. Additionally, we anticipate that DTE and its partners will secure enough commitments to move forward with the major NEXUS pipeline project, providing another significant catalyst and bringing a potential midstream MLP closer to reality. 3) Weather. We think the significantly colder than normal 1Q weather has provided a strong start to 2014 earnings, as well as enabling DTE to build goodwill with regulators and customers by delaying RDM liability income and pushing out its planned Electric GRC by at least six months while maintaining 2014 guidance."
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 $73.19 yesterday.
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