Duke Energy (DUK) Stock Forecast & Price Target

Duke Energy is positioned for significant capital expenditure (capex) increases, particularly following the recent filing of its updated Carolinas Resource Plan, indicating a proactive approach to infrastructure development. The company is projected to achieve an average annual earnings per share (EPS) growth rate exceeding 6.5%, with the possibility of this outlook being revised upward in light of forthcoming quarterly results. Additionally, steady residential population growth of approximately 2% in key markets such as the Carolinas, Florida, and Indiana further enhances the company's growth prospects.

Duke Energy's stock outlook is marred by a sluggish dividend growth rate of approximately 2% per year, significantly trailing behind the industry average of around 5.5%. This slow growth may diminish investor attraction, especially in comparison to its peers that offer more appealing returns. Additionally, the overall investment environment appears unfavorable, with broader market trends indicating a pivot away from traditional utility defense strategies, further compounding the company's challenges.