DTE Energy Rating Downgraded by Piper Jaffray, BidaskClub

Trending News ☀️

DTE ($NYSE:DTE) Energy is a publicly traded energy company based in Detroit, Michigan. The company’s stock has come under pressure recently after analysts at Piper Jaffray Companies lowered their price target from $150.00 to $140.00. They now have an “overweight” rating on the stock. This followed a downgrade by analysts at BidaskClub from a “buy” rating to a “hold” rating.

The company is involved in the generation, purchase, transmission, distribution and sale of electricity and natural gas. It also owns and operates a number of power plants, including nuclear, coal-fired, natural gas and renewable energy. Despite the recent downgrade, the company remains in a strong financial position with a market capitalization of over $19 billion.

Stock Price

DTE Energy‘s stock rating was downgraded by Piper Jaffray from “overweight” to “neutral” on BidaskClub. Despite this news, the stock price has remained mostly positive. On Tuesday, the stock opened at $112.7 and closed at $112.5, up 0.4% from the previous closing price of $112.1.

VI Analysis

The company’s businesses include utilities and infrastructure. The company’s infrastructure business owns and operates a portfolio of energy assets, including natural gas pipelines, storage facilities, and power generation plants. DTE Energy has a strong financial position, with a credit rating of Aa3/AA- from Moody’s and Standard & Poor’s, respectively. The company’s utilities business provides stable cash flows, while the infrastructure business generates higher returns.

However, DTE Energy’s high debt levels limit its financial flexibility and increase its exposure to interest rate risk. DTE Energy’s earnings are expected to continue growing at a similar pace in the future, supported by continued investment in its utilities and infrastructure businesses. Risks to DTE Energy’s business include regulatory uncertainty, competition from other energy providers, and the potential for higher interest rates.

VI Peers

The company operates through two segments: Electric and Gas. The Electric segment generates, purchases, distributes, and sells electricity to residential, commercial, and industrial customers in southeastern Michigan. The Gas segment purchases, transports, stores, distributes, and sells natural gas to residential, commercial, and industrial customers in Michigan. As of December 31, 2018, DTE Energy Co operated 10 coal-fired generating stations with a total capacity of 6,879 megawatts; 29 natural gas-fired generating stations with a total capacity of 4,473 megawatts; 71 wind turbines with a total capacity of 132 megawatts; 7 solar arrays with a total capacity of 35 megawatts; and 1 nuclear power plant with a total capacity of 1,944 megawatts. The company’s competitors include CMS Energy Corp, OGE Energy Corp, and Xcel Energy Inc.

– CMS Energy Corp ($NYSE:CMS)

CMS Energy Corporation is an American utility company based in Jackson, Michigan, with its principal subsidiary, Consumers Energy, serving Michigan. CMS Energy also owns and operates two power generation businesses, one in Michigan and one in Hawaii.

The company has a market capitalization of $16.81 billion as of 2022 and a return on equity of 12.15%. CMS Energy is engaged in the generation, transmission, and distribution of electricity and natural gas. The company also owns and operates power generation facilities in Michigan and Hawaii.

– OGE Energy Corp ($NYSE:OGE)

Duke Energy Corp is a publicly traded electric power holding company in the United States. The company has a market capitalization of $73.9 billion as of March 2021 and a return on equity of 18.7%. Duke Energy is the largest electric power holding company in the United States, with regulated utilities in six states and a commercial businesses in 47 countries. The company’s regulated utility operations serve approximately 7.7 million electric customers in the Carolinas, Florida, Indiana, Ohio and Kentucky. Duke Energy’s commercial businesses include wholesale energy trading and marketing, natural gas pipelines, storage and gathering, and international energy assets.

– Xcel Energy Inc ($NASDAQ:XEL)

Xcel Energy Inc. is a publicly traded company that provides electricity and natural gas services in the United States and Canada. The company has a market capitalization of $35.77 billion as of 2022 and a return on equity of 9.4%. The company operates in eight states and serves more than 3.6 million customers. Xcel Energy is the largest provider of electricity in Colorado and the second-largest provider of electricity in Minnesota. The company also provides natural gas service in Colorado, Minnesota, and Wisconsin.

Summary

DTE Energy is a utility company that serves the Detroit, Michigan area. The company is one of the largest electric and gas utilities in the United States. Investing in DTE Energy can be a good way to gain exposure to the Detroit economy.

The company has a long history of paying dividends, and its shares have generally performed well over time. The company is also a leading provider of renewable energy in the United States.