Analyst Neil Kalton of Wells Fargo reiterated a Buy rating on WEC Energy Group (WEC – Research Report), retaining the price target of $115.00.
Neil Kalton has given his Buy rating due to a combination of factors that highlight WEC Energy Group’s promising growth potential. One of the main drivers is the significant opportunity in data center development, particularly with the ongoing construction of Microsoft’s data center in Mt. Pleasant, which is expected to expand further. This project alone represents a substantial capital expenditure opportunity for WEC, which could translate into higher earnings.
Additionally, the acquisition of land by Cloverleaf for a large-scale data center project in Port Washington further underscores the potential for growth. Despite some concerns about global tariffs impacting costs, WEC’s ability to recover these costs and earn a return on regulated capital expenditures is seen as a positive. The company’s strategic position in the utility sector, coupled with its potential for above-average earnings growth, supports the Buy rating.