The Detroit-based company is an energy and energy technology provider for residential and commercial electric and natural gas.
The upgrade comes despite a change in the Michigan Public Service Commission Chair and delays in proposed utility legislation, Barclays analysts said. Michigan remains one of the best utility jurisdictions in the U.S., according to the firm.
"We see upside earnings and value opportunity embedded in the company's unregulated businesses. A reduction in competition as a result of weakness in the MLP and Yield Co space should allow DTE to review more opportunities at its hurdle rates over the next couple years," the firm said in an analyst note.
Shares of DTE Energy are rising by 1.55% to $80.83 at the start of trading on Wednesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DTE ENERGY CO as a Buy with a ratings score of A-. 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 revenue growth, compelling growth in net income, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DTE's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 0.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 69.9% when compared to the same quarter one year prior, rising from $156.00 million to $265.00 million.
- Net operating cash flow has increased to $288.00 million or 29.72% when compared to the same quarter last year. In addition, DTE ENERGY CO has also modestly surpassed the industry average cash flow growth rate of 21.25%.
- 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.
- You can view the full analysis from the report here: DTE