DTE Energy (DTE) Stock Forecast & Price Target

DTE Energy's significant outlook is bolstered by a 22% increase in its five-year capital expenditure plan, now projected at $36.5 billion through 2030, focusing on renewable energy and compliance with state regulations. The company targets a commendable earnings per share (EPS) growth rate of 6%-8%, with the potential to reach the higher end of this range between 2025 and 2027, aided by renewable natural gas (RNG) tax credits that outperform peers. Additionally, DTE's existing excess generation capacity of approximately 1 GW positions the company favorably to meet growing customer demand, including emerging opportunities from its first data center contract.

DTE Energy's management has updated its target for the funds from operations (FFO) to debt ratio to approximately 15%, which is a slight decline from the previous range but still above key downgrade thresholds. Earnings projections for 2026 have been revised down, as the initial guidance fell short of both prior estimates and consensus expectations, prompting a reduction in long-term earnings forecasts. Furthermore, the company's focus on financing plans through a peer-average amount of equity has diminished its competitive edge, while a slower adoption by data center customers in Michigan has negatively impacted market sentiment.