Stable Yield & Growth: Duke Energy Upgraded to Buy by Goldman

Core Viewpoint - A significant endorsement from Goldman Sachs has shifted institutional sentiment towards Duke Energy, indicating a potential investment opportunity in the utility sector [1][2]. Company Overview - Duke Energy has been upgraded from Neutral to Buy by Goldman Sachs, with a new price target of $132.00 per share, suggesting a positive outlook compared to its current trading price of $116.93 [2][3]. - The company is recognized for its blend of regulated operations and a clear growth strategy, which is seen as offering a superior risk-reward profile in a challenging market [4]. Growth Strategy - Duke Energy has a $145 billion capital investment program planned over the next decade, focusing on critical infrastructure and clean energy sources, which is expected to drive earnings growth [6]. - The company anticipates achieving 5% to 7% annual earnings growth through its investment strategy [7]. Financial Performance - In the first quarter of 2025, Duke reported an adjusted earnings per share (EPS) of $1.76, exceeding analyst expectations and demonstrating the effectiveness of its growth strategy [8]. Shareholder Returns - Duke Energy offers a dividend yield of approximately 3.59% and has a long history of paying dividends for 99 consecutive years, with increases over the past 20 years, providing stability for investors [9][10]. Risk Management - The company has strengthened its balance sheet by selling its non-regulated Commercial Renewables business for $2.8 billion, allowing for growth funding with less reliance on new debt [11][12]. - Recent legislative developments in North Carolina provide Duke with greater operational flexibility, aiding in the management of its energy transition while ensuring reliability and affordability [13]. Market Position - Duke Energy is positioned as a defensive investment with a dual appeal of income and growth, making it attractive for investors seeking stability in a volatile market [15][16].