Scotiabank Downgrades DTE Energy To Sector Perform, Cuts Price Target To $147

Core Viewpoint - Scotiabank downgraded DTE Energy from Sector Outperform to Sector Perform with a revised price target of $147.00, while maintaining a positive long-term EPS growth outlook of approximately 7.5% annually, which is above consensus and management's guidance [1] Summary by Relevant Sections EPS Growth Outlook - DTE Energy's long-term EPS growth is projected at about 7.5% annually, which is favorable compared to consensus and management's guidance [1] - The guidance range for EPS growth is between 6% and 8%, but Scotiabank believes the upside potential is limited [2] Market Sentiment and Regulatory Environment - The regulatory environment in Michigan remains favorable for DTE Energy [1] - There is a current market trend where investors show less interest in defensive utilities, impacting sentiment towards DTE [2] - Michigan's challenges in attracting data center customers are seen as a headwind to sentiment [2] Valuation and Financial Expectations - A positive financial update is expected in the third quarter, but valuation is likely to remain rangebound compared to peers [2]