Dominion Energy (D – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ross Fowler from Bank of America Securities maintained a Hold rating on the stock and has a $61.00 price target.
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Ross Fowler has given his Hold rating due to a combination of factors surrounding Dominion Energy’s financial performance and strategic plans. Dominion Energy’s fiscal year 2024 earnings per share (EPS) aligned closely with consensus expectations and were at the upper end of the company’s guidance. This consistent performance, along with the company’s reaffirmed long-term EPS and dividend growth guidance, suggests stability, but not enough momentum for an upgrade in rating.
Additionally, while Dominion Energy has increased its capital spending plan significantly and updated its financing strategy to include new equity and hybrid securities, these plans are balanced by the inherent risks and uncertainties in execution. The expansion in data center capacity and its impact on future growth has not yet been fully integrated into current guidance, leaving some potential upside unaccounted for. The company’s tightened EPS guidance for 2025 and maintained operational growth expectations provide a conservative outlook that justifies a Hold rating.
In another report released on February 10, Jefferies also maintained a Hold rating on the stock with a $55.00 price target.