Analysts Boost Targets, Anticipate Dominion Energy Stock Rally Amid Renewables Surge
Dominion Energy, a significant player in the utility sector, is currently seeing positive developments in its stock performance. Analysts have raised their price targets for the company, anticipating a stock rally amid a rising focus on renewable energy. The recent trading price of Dominion Energy shares was around $61.05, offering an attractive dividend yield of approximately 4.4%.
Stock Performance and Analyst Targets
The stock has experienced a modest increase, climbing about 6% over the past month. Major financial institutions have raised their targets, indicating strong market confidence. Notable updates include:
- Morgan Stanley increased its 12-month target to $66.
- Barclays and BofA both set their targets at $63.
- Evercore issued an “in-line” target of $67.
The consensus market target for Dominion Energy is now estimated at $62–$63. Analysts highlight the company’s potential for positive earnings revisions that often precede stock price increases.
Upcoming Earnings and Financial Guidance
Dominion Energy is set to announce its Q3 earnings on October 31, with expectations for earnings per share (EPS) of approximately $0.93. This is a slight decrease from last year’s Q3 EPS of $0.98. The company has reaffirmed its full-year operating EPS guidance, which ranges from $3.28 to $3.52.
Focus on Renewable Energy
The utility is actively investing in clean energy initiatives to meet increasing demands, especially from data centers. The company plans to commit over $50 billion in capital spending through 2029, which includes notable projects like:
- Coastal Virginia Offshore Wind (CVOW): This project, which has a capacity of 2.6 GW, is over 50% complete, with the first power expected in Q1 2026.
- Growth plans for data center energy supply capacity, anticipated to double from the current contracted 40 GW.
These initiatives are projected to drive a 5–7% annual growth in EPS, reinforcing Dominion’s commitment to renewable energy sources.
Valuation and Market Positioning
Dominion Energy currently trades at a forward price-to-earnings ratio (P/E) of about 19, which is below the average for the utility sector. Analysts also note a low price-to-earnings growth (PEG) ratio of around 1.3, signifying potential undervaluation. The company serves approximately 3.6 million electric customers and over 0.5 million gas customers across Virginia, North Carolina, and South Carolina.
Future Outlook
Looking ahead, Dominion Energy’s trajectory appears positive, with continued confidence from investors. The upcoming earnings call will be closely scrutinized for insights on performance and future spending. Key factors influencing growth include the successful launch of the CVOW project and approval for rate cases in Virginia and North Carolina.
Overall, Dominion Energy stands out as a solid choice for investors seeking both income and growth, particularly in an era where the demand for renewable energy solutions is on the rise.
