Citigroup raises PT on DTE Energy

DTE Energy

29/10/2024 11:03

** Citigroup raises price target on U.S.-based utility
company DTE Energy  DTE.N  to $142 from $132 on third-quarter
profit beat
    ** New price target represents a 12% upside to the stock's
last close
    ** Raises PT as DTE signaled a meaningful increase to its
$25 bln capex plan with new generation and reliability spend to
upgrade the existing electric and gas grids
    ** Says that although Ford's BlueOval City plant has delayed
EV production to 2027 from 2025 previously, it will only
minimally impact DTE since the co has signed power purchase
agreements with Ford, which typically include "take or pay"
provisions
    ** Take or pay provision is a contractual clause that
requires the buyer (here Ford) to pay for a certain product or
service whether they use it or not
    ** Adds DTE could potentially redirect this power to other
industrial customers within the Tennessee area
    ** 11 of 20 brokerages rate the stock "buy" or higher, 9
"hold"; median PT is $137 - LSEG data
    ** Up till last close, stock is up 14.85% YTD

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))