DTE Energy: Q2 Earnings Preview, A Regulated Utility With Data Center Tailwinds

DTE Energy is rated Strong Buy with a $165 12-month price target, driven by robust data-center capex visibility and above-peer authorized ROE. The $36.5B five-year capex plan, supported by Google and Oracle contracts, underpins 6–8% long-term EPS growth at a 9.9% authorized ROE. DTE trades at a 7% forward P/E discount to peers, yet offers superior growth and regulatory outcomes, with disciplined capital allocation and dividend coverage. Key risks include MPSC regulatory decisions, coal plant retirements, weather impacts, and potential equity dilution from $500M–$600M anticipated issuance.

DTE Energy (DTE) is Michigan's largest electric and gas utility, supplying power to about 2.3 million electric customers across the southeast of the state and natural gas to roughly 1.4 million customers statewide.