On Thursday, BMO Capital Markets adjusted its price target for WEC Energy Group (NYSE:WEC) shares, increasing it to $90 from the previous $89, while retaining a Market Perform rating on the stock. The adjustment follows the release of WEC Energy's first-quarter earnings, which surpassed both the analyst's expectations and the consensus estimates.
WEC Energy reported earnings per share (EPS) of $1.97 for the first quarter of 2024, which was higher than the anticipated $1.90 by BMO Capital and the consensus estimate of $1.91.
The company's results also fell within the initial guidance range of $1.96 to $2.00. According to the analyst, the quarterly performance and the updates provided in today's call were seen as consistent with expectations.
The company experienced a significant year-over-year increase in its quarterly results, with a roughly 22% rise, equating to an additional $0.36 per share compared to the first quarter of 2023. In addition to the strong quarterly performance, WEC Energy's management confirmed the company's ongoing long-term EPS growth rate target of 6.5-7% and a dividend payout ratio of 65-70%.
The decision to maintain the Market Perform rating indicates that BMO Capital views the stock as likely to perform in line with the broader market. The slight increase in the price target to $90 is attributed to an adjustment to the peer group multiples used in the firm's valuation model. This update reflects the analyst's latest assessment of WEC Energy's market position following the reported financial results.
InvestingPro Insights
Following the positive earnings report and BMO Capital Markets' price target update for WEC Energy Group, it's valuable to consider additional metrics that can provide a broader context for investors. With a current market capitalization of $26.24 billion, WEC Energy is seen as a substantial player in its sector. The company's P/E ratio stands at 18.04, which suggests that the stock might be trading at a premium compared to its near-term earnings growth, given the PEG ratio of 2.48.
Investors might also note WEC Energy's strong track record of dividend reliability, as it has raised its dividend for 20 consecutive years and maintained dividend payments for 54 consecutive years. Despite a revenue decline over the last twelve months of 9.32%, the company's dividend yield as of the latest data is an attractive 4.04%, with a dividend growth of 7.05% in the same period. These figures highlight WEC Energy's commitment to shareholder returns.
For those seeking more in-depth analysis, there are additional InvestingPro Tips, such as the company's low price volatility and the fact that analysts predict profitability for this year, which could be particularly relevant for long-term investors. To explore these insights further and uncover more expert tips, consider visiting InvestingPro. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 8 InvestingPro Tips for WEC Energy Group that could guide your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.