DTE Energy (DTE): Valuation Check After Landmark Approval to Power Major Oracle–OpenAI Data Center Project

DTE Energy (DTE) just cleared a big regulatory hurdle, winning unanimous approval to power a huge Oracle and OpenAI backed data center in Saline Township. For shareholders, this is about long term load growth and capital deployment, not a one off headline.

See our latest analysis for DTE Energy.

Despite the noise around the new at the market equity program and leadership changes at DTE Vantage, the stock’s recent pullback, with a 30 day share price return of minus 5.99 percent and 90 day share price return of minus 7.49 percent, contrasts with a still solid 1 year total shareholder return of 9.73 percent. This suggests momentum has cooled near 127.64 dollars even as the long term data center growth story takes shape.

If this kind of infrastructure driven growth story interests you, it might be worth exploring fast growing stocks with high insider ownership for other companies where insiders are backing ambitious expansion plans.

With DTE trading about 17 percent below the average analyst price target and modestly under many intrinsic value estimates, the key question now is whether this pullback signals a fresh buying opportunity or if the market already reflects future data center driven growth.

Most Popular Narrative Narrative: 15.1% Undervalued

With DTE Energy last closing at 127.64 dollars against a narrative fair value of about 150.31 dollars, the current pullback sits in the shadow of a much richer long term story built on regulated growth, stable earnings and expanding returns.

DTE's 30 billion dollar multi year capital plan is heavily focused (>90%) on grid modernization, digitalization, and reliability upgrades, including deployment of over 220 smart grid devices this year. This is already showing a 70% year over year improvement in reliability. These investments are expected to drive regulated asset base growth, supporting long term earnings stability and margin improvement from lower O&M expenses.

Read the complete narrative.

Curious how modest revenue growth, rising margins and a richer future earnings multiple together justify this upside case. Want to see which assumptions do the heavy lifting.

Result: Fair Value of $150.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, major execution risk on DTE's 30 billion dollar capex plan, along with potential regulatory pushback on large rate cases, could slow earnings growth.

Find out about the key risks to this DTE Energy narrative.

Build Your Own DTE Energy Narrative

If you see the story differently or want to stress test the assumptions with your own inputs, you can build a custom view in minutes: Do it your way.

A great starting point for your DTE Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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