Seaport Global Securities Upgrades CMS Energy (CMS) to Buy

October 6, 2022 8:32 AM EDT
Get Alerts CMS Hot Sheet
Price: $61.26 --0%

Rating Summary:
    9 Buy, 15 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 16 | New: 15
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Seaport Global Securities analyst Angie Storozynski upgraded CMS Energy (NYSE: CMS) from Neutral to Buy with a price target of $63.00.

The analyst commented, "It's hard not to like CMS, even in the current interest rate environment. The company grows EPS/DPS at ~8% annually rain or shine, and has years of stellar earnings execution to prove it. Its Integrated Resource Plan is now settled allowing the company to cease coal-fired power generation by '25 and likely extend the annual 8% EPS growth beyond the next five years. The company has an electric rate case pending in MI, with a final order in 1Q23, but it's hard to hold the case against CMS given how constructive the state has been for utilities. CMS trades at just a 5%/4% '24/'25 P/E premium to an average regulated electric/gas utility, down from 8-12% historically. The stock has a 3.3% '23 div yield and now trades at a slight discount to DTE, its closest peer, even based on our above-consensus '24/'25 EPS projections for DTE. Therefore, we are upgrading CMS to Buy from Neutral and our PT is $63."

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

Shares of CMS Energy closed at $58.53 yesterday.

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