Update shared on04 Oct 2025
Fair value Increased 3.08%Analysts have raised their price target for WEC Energy Group to $107 from $105, citing improved fair value as well as slightly stronger revenue growth and profit margin expectations.
Analyst Commentary
Recent evaluations have offered a balanced perspective on WEC Energy Group, reflecting both optimism about its outlook and awareness of potential challenges ahead. The updated price target reflects reassessed expectations in key performance areas.
Bullish Takeaways
- Bullish analysts are encouraged by the company's improved profit margin outlook and anticipate greater operational efficiency moving forward.
- Slightly stronger revenue growth projections have contributed to upward revisions in fair value assessments.
- The utility's consistent execution on strategic initiatives is viewed as a positive driver of long-term stability and valuation support.
- WEC Energy’s defensive business model continues to attract positive sentiment, as it is considered well-positioned to navigate market volatility.
Bearish Takeaways
- Bearish analysts remain cautious regarding the Neutral rating and point to limited near-term upside for the shares despite the higher price target.
- Concerns persist about the regulatory environment and its potential to introduce unpredictability in rate adjustments or project approvals.
- There is ongoing scrutiny over growth pace relative to industry peers, with modest improvements in revenue and margins potentially limiting significant outperformance.
- Potential headwinds from rising input costs or macroeconomic pressures could affect execution of growth plans and impact future profitability.
What's in the News
- WEC Energy Group provided earnings guidance for the third quarter of 2025, expecting an EPS range of $0.74 to $0.80. (Key Developments)
- The company reaffirmed its 2025 annual earnings guidance, maintaining the expected range at $5.17 to $5.27 per share. (Key Developments)
Valuation Changes
- Fair Value: Increased from $109.73 to $113.12. This represents a modest upward adjustment in the company's assessed worth.
- Revenue Growth: Risen slightly from 5.07% to 5.34%. This reflects marginally improved expectations for top-line expansion.
- Net Profit Margin: Improved from 19.42% to 19.45%. This indicates stronger projected operational profitability.
- Future P/E: Increased from 21.54x to 22.00x. This suggests investors are now willing to pay a somewhat higher premium for future earnings.
- Discount Rate: Unchanged at 6.78%. This reflects a stable approach to risk assessment in valuation models.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.