NEW YORK (TheStreet) -- DTE Energy
(DTE - Get Report) was upgraded to "buy" from "neutral" with an increased price target to $79 from $78 at ISI Group.
The firm said it raised its rating based on the company's NEXUS Pipeline visibility, rate base growth and valuation.
Shares of DTE Energy are up 1.83% to $73.39.
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TheStreet Ratings team rates DTE ENERGY CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate DTE ENERGY CO (DTE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, reasonable valuation levels, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 14.7%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Multi-Utilities industry average. The net income increased by 18.1% when compared to the same quarter one year prior, going from $105.00 million to $124.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, DTE ENERGY CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- DTE ENERGY CO has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DTE ENERGY CO reported lower earnings of $3.77 versus $3.87 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $3.77).
- You can view the full analysis from the report here: DTE Ratings Report