Update shared on18 Oct 2025
Fair value Increased 4.79%Analysts have raised their fair value estimate for WEC Energy Group by approximately $5 to $118.54. They cite improved operational execution and ongoing optimism around the company’s growth prospects and regulatory backdrop.
Analyst Commentary
Recent Street research reveals a range of views on WEC Energy Group, highlighting both positive factors and lingering concerns impacting the stock's valuation and outlook.
Bullish Takeaways- Bullish analysts emphasize WEC Energy's consistent operational performance and its ability to deliver near the top of guidance. This has been a key driver for recent upward adjustments to fair value and price targets.
- The regulatory environment in Wisconsin is viewed as constructive, providing a strong foundation for growth initiatives and supporting a premium valuation relative to peers.
- Stable and disciplined management underpins confidence in the company's long-term earnings growth projections and its capacity to navigate ongoing industry transformation.
- Accelerating demand for electricity, especially from new sources such as data centers, is described as a "once in a generation opportunity" for regulated utilities. This offers the potential for sustained rate base and earnings growth.
- Bearish analysts see limited near-term upside for regulated utility stocks, including WEC Energy, as investor sentiment remains challenging and sector multiples are under pressure.
- While the company is well-regarded operationally, doubts persist about converting growing electricity demand into significant upside to earnings per share compared to industry peers.
- There are calls for caution around valuation, as WEC Energy continues to command a premium relative to the broader utilities sector. This may constrain further share appreciation without additional execution catalysts.
- Current research initiations have begun coverage at Hold ratings, reflecting a balanced view of both the company’s strengths and the sector’s cyclical challenges.
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. (Company announcement)
- The company reaffirmed its full-year 2025 earnings guidance and is projecting earnings per share between $5.17 and $5.27. (Company announcement)
Valuation Changes
- Fair Value Estimate: Increased by approximately $5, from $113.12 to $118.54 per share.
- Discount Rate: Remained unchanged at 6.78%, indicating consistent risk assumptions.
- Revenue Growth: Marginally decreased from 5.34% to 5.31%.
- Net Profit Margin: Declined slightly from 19.45% to 19.35%.
- Future P/E Ratio: Increased from 22.0x to 23.2x, reflecting a higher valuation multiple on projected earnings.
Disclaimer
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