On Thursday, BofA Securities adjusted its stance on WEC Energy Group (NYSE:WEC), upgrading the utility company's stock from Underperform to Neutral. Accompanying the rating shift, the firm also increased the price target to $98.00, up from the previous $90.00. The stock, which has delivered an impressive 18% return year-to-date, currently trades at a P/E ratio of 23.4x. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The upgrade comes as a result of a positive outcome in the recently concluded Wisconsin rate case. Additionally, WEC Energy has been experiencing strong demand growth in its Wisconsin market. The analyst at BofA Securities highlighted the company's robust capital spending plan and its strong balance sheet as key factors for the improved rating. InvestingPro data reveals the company's impressive dividend track record, having maintained payments for 54 consecutive years and raised them for 21 straight years.
WEC Energy's consistent performance record was also noted as a contributing factor to the rating change. Despite ongoing regulatory proceedings in Illinois, their impact on WEC Energy's results is seen as diminishing, which further supports the analyst's revised outlook.
In terms of earnings, BofA Securities is maintaining its estimates for WEC Energy, which align with the guidance recently issued by the company. The raised price target to $98 is a reflection of the improved regulatory profile and has been factored into the firm's valuation methodology.
In other recent news, WEC Energy Group reported steady growth in its Q3 2024 earnings, with adjusted earnings of $0.82 per share. The company reaffirmed its full-year 2024 earnings guidance of $4.80 to $4.90 per share. A significant development was the unveiling of WEC Energy Group's largest-ever capital plan, amounting to $28 billion over five years, intended to support increased demand and transition towards renewable energy.
BMO (TSX:BMO) Capital Markets adjusted its outlook on WEC Energy Group, increasing the firm's price target on the stock to $104.00, up from the previous target of $97.00, while maintaining its Market Perform rating. The revision reflects BMO Capital's updated analysis of WEC Energy's financial projections for the years 2024 through 2028, taking into account the company's latest capital and financing strategies, as well as recent developments in the Wisconsin rate cases.
WEC Energy Group has revised its executive compensation metrics, aligning executive pay with both financial performance and operational and social goals. The company has maintained dividend payments for 54 consecutive years, with a current dividend yield of 3.4%. The company's long-term earnings per share growth rate target of 6.5% to 7% remains unchanged.
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