Wells Fargo upgrades Duke Energy to Overweight, raises price target to $103

As previously reported, Wells Fargo analyst Neil Kalton upgraded Duke Energy to Overweight from Equal Weight with a price target of $103, up from $94. The firm notes that after a lengthy period of underwhelming EPS execution, Duke Energy appears poised to reclaim its position as one of the premium names in the sector. Wells believes Duke Energy has a long runway of capital investment driven by energy transition spend. The planned capex, which is backed by highly constructive regulatory compacts in North Carolina and Florida, is supportive of a 6% EPS CAGR through at least 2028, says the firm. Lastly, the implementation of constructive 3-year MYRPs for Duke’s NC utilities substantially increases Wells’ confidence in the company’s ability to achieve the long-term EPS CAGR goal of 6%.