Scotiabank Downgrades DTE Energy (DTE) to Sector Perform

Scotiabank analyst Andrew Weisel downgraded DTE Energy (NYSE: DTE) from Sector Outperform to Sector Perform with a price target of $147.00.

The analyst comments "OUR TAKE: Slightly negative. We downgrade DTE to Sector Perform given limited upside to the EPS outlook, at least on a guidance basis, coupled with our view that investors are less interested in defensive stocks like DTE in today’s risk-on macro environment. We remain bullish on the outlook calling for above-average EPS growth and see DTE as being well-positioned to serve large load customers, and are confident in our above-consensus and above-guidance forecasts calling for ~7.5% annual growth. We also continue to believe that the MI regulatory environment is better than most investors appreciate. Still, despite what we expect to be a bullish financial update with 3Q25 results, management has made it fairly clear that, at least for the next five-ish years, the 6%-8% range seems unlikely to change (though with a bias toward the high end). Additionally, while MI has done well with manufacturers, the state has lagged with data center customers, which we believe has weighed on sentiment. For these (mostly macro) reasons, we move to the sidelines and expect the valuation to be rangebound relative to peers, but still see value, particularly for investors looking for defensive growth and/or those with longer-term investment horizons."

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 $139.28 yesterday.

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