BMO Capital Markets has adjusted its price target for WEC Energy Group (NYSE: NYSE:WEC), increasing it to $91.00 from the previous $87.00. The firm maintained a Market Perform rating on the stock.
The revision on Thursday follows the energy company's second-quarter earnings report, where it posted earnings per share (EPS) of $0.67, surpassing both BMO Capital's estimate and the consensus estimate of $0.64 and $0.63 respectively, and outperforming the company's own guidance range of $0.60 to $0.64.
The higher earnings were attributed to more favorable operations and maintenance (O&M) costs, as well as lower financing expenses than expected. Despite this quarter's earnings beat, WEC Energy's year-over-year results showed a decline of $0.25 per share compared to the second quarter of 2023. This decrease was largely due to rate design changes at Peoples Gas Light (PGL), as well as variations in taxes, other expenses, and interest.
WEC Energy's management has confirmed that it is sticking with its full-year 2024 guidance, projecting an EPS range of $4.80 to $4.90. The company also reiterated its commitment to a long-term EPS growth rate of 6.5% to 7.0% and a dividend payout ratio of 65% to 70%.
WEC Energy reported its second-quarter earnings for 2024, meeting market expectations at $0.67 per share. This comes in line with BMO Capital Markets' recent adjustment of the company's price target, reflecting its solid performance.
The company has also reaffirmed its full-year earnings guidance for 2024, projecting an EPS range of $4.80 to $4.90 per share.
WEC Energy Group is making significant strides in its capital plan, which includes large-scale renewable energy projects and expansion in natural gas generation. In addition, the company plans to issue up to $200 million in common equity in 2024 and approximately $500 million annually post-2024.
InvestingPro Insights
Following BMO Capital Markets' updated price target on WEC Energy Group, InvestingPro data highlights a robust financial profile for the company. With a market capitalization of $27.2 billion and a Price/Earnings (P/E) ratio of 19.85, WEC Energy appears to be trading at a premium relative to its near-term earnings growth. However, the company's history of raising its dividend for 20 consecutive years, coupled with a current dividend yield of 3.88%, underscores its commitment to returning value to shareholders. Notably, WEC Energy has maintained dividend payments for an impressive 54 consecutive years.
InvestingPro Tips reveal that four analysts have revised their earnings estimates upwards for the upcoming period, which may indicate a bullish outlook on the company's financial performance. Additionally, the stock's low price volatility suggests a stable investment for those seeking consistency in the energy sector. Nevertheless, investors should be aware that the Relative Strength Index (RSI) suggests the stock is currently in overbought territory, which could signal a potential pullback in the near term.
For readers looking to delve deeper into WEC Energy's financial health, InvestingPro offers additional tips, including insights into the company's short-term obligations versus liquid assets and its performance against analyst profitability predictions for the year. To explore these further, visit https://www.investing.com/pro/WEC for a comprehensive analysis.
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