Analyst Julien Dumoulin Smith from Jefferies reiterated a Buy rating on Duke Energy (DUK – Research Report) and increased the price target to $133.00 from $132.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that position Duke Energy as a strong investment choice in the utility sector. One of the primary reasons is Duke Energy’s defensive nature, making it an attractive option for investors looking to mitigate risks associated with macroeconomic volatility and tariff concerns. The company’s earnings are largely derived from regulated electric and gas utilities, which exhibit inelastic demand, providing stability regardless of economic conditions.
Furthermore, Duke Energy’s substantial capital plan, supported by multi-year rate plans and rider mechanisms, reduces its vulnerability to cost inflation and tariff fluctuations. The company also benefits from a favorable regulatory environment, with a significant portion of its capital investments eligible for efficient recovery mechanisms. Additionally, Duke Energy offers growth potential with a projected EPS growth rate of 6.8%, surpassing consensus expectations, and a competitive dividend yield of 3.5%. These factors, combined with its operational advantages and diversified service territory, make Duke Energy well-positioned to navigate macroeconomic uncertainties.
In another report released on March 25, DBS also maintained a Buy rating on the stock with a $135.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DUK in relation to earlier this year.