Update shared on 02 Nov 2025
Fair value Increased 2.95%Analysts have modestly increased their average price target for WEC Energy Group, raising fair value estimates from $118.54 to $122.03 per share. They cite expectations for stronger earnings growth, robust management execution, and constructive regulatory support.
Analyst Commentary
Recent Street research reveals a mix of optimism and caution regarding WEC Energy Group. Analysts evaluating the company have highlighted both supportive and challenging factors that could influence WEC’s valuation and growth outlook.
Bullish Takeaways- Bullish analysts emphasize WEC’s consistent management execution, noting that strong leadership has historically delivered results near the top end of guidance.
- Upward price target revisions reflect increased confidence in WEC’s earnings growth trajectory. Some analysts forecast that the company may raise its EPS growth rate closer to 7%-8% annually, above its prior long-term outlook.
- Constructive regulatory environments and supportive state jurisdictions are cited as catalysts for continued operational stability and growth prospects. These factors have prompted premium valuations compared to peers.
- The company’s execution of its capital plan and ability to capture incremental load growth are seen as key strengths. These points lead some analysts to expect WEC to convert sector-wide opportunities into tangible upside.
- Bearish analysts caution that expectations for compound annual growth rate (CAGR) are already high, which may limit additional upside relative to other premium utilities in the sector.
- Much of the anticipated benefit from incremental capital deployment and load growth is expected to materialize only at the later stages of WEC’s current five-year plan. This scenario increases the risk of delayed returns.
- Some remain cautious on regulated utility stocks overall. These analysts suggest that investor sentiment and market conditions may continue to challenge share performance in the near term despite underlying demand growth.
- Valuation concerns persist as the growth gap between WEC and other high-growth peers appears to be narrowing. This trend could potentially impact future relative performance.
What's in the News
- WEC Energy Group reaffirmed its earnings guidance for 2025 with expected earnings of $5.17 to $5.27 per share, assuming normal weather conditions (Key Developments).
Valuation Changes
- The consensus analyst price target has risen slightly from $118.54 to $122.03 per share.
- The discount rate remains unchanged at 6.78%.
- Revenue growth projections have increased marginally from 5.31% to 5.35% per year.
- The net profit margin is up modestly from 19.35% to 19.58%.
- The future P/E ratio has edged higher from 23.19x to 23.99x.
Disclaimer
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