Duke Energy (DUK, Financial) and GE Vernova (GEV) have entered into a collaborative agreement aimed at providing cutting-edge natural gas turbines and related equipment. This partnership intends to support the growing demands stemming from advanced manufacturing, data centers, and regional population increases.
The agreement includes plans to develop projects that feature up to 11 of GE Vernova's 7HA gas turbines, which align with Duke Energy's integrated resource strategies. This initiative will help Duke Energy maintain a steady supply of reliable energy, manage customer costs effectively, and accommodate extensive future growth scenarios.
Notably, these efforts build upon the recent acquisition of eight additional 7HA gas turbines, underscoring the companies' commitment to advancing energy solutions that are cost-effective and scalable for future demands.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Duke Energy Corp (DUK, Financial) is $123.95 with a high estimate of $135.00 and a low estimate of $111.00. The average target implies an upside of 2.22% from the current price of $121.27. More detailed estimate data can be found on the Duke Energy Corp (DUK) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Duke Energy Corp's (DUK, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Duke Energy Corp (DUK, Financial) in one year is $113.54, suggesting a downside of 6.37% from the current price of $121.265. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Duke Energy Corp (DUK) Summary page.
DUK Key Business Developments
Release Date: February 13, 2025
- Adjusted Earnings Per Share (EPS) 2024: $5.90, within guidance range.
- 2025 EPS Guidance Range: $6.17 to $6.42, with a midpoint of $6.30, representing around 7% growth over 2024.
- Capital Plan: $83 billion, driving 7.7% earnings-based growth.
- Rate-Based Investments Approval: $45 billion.
- Solar Capacity in Florida: 1,500 megawatts now in service.
- Retail Sales Growth Forecast 2025: 1.5% to 2%.
- Five-Year Capital Plan: $83 billion, a 12% increase versus prior plan.
- Annual Earnings-Based Growth Through 2029: 7.7%.
- Equity Funding Increase: $6.5 billion over the next five years.
- Dividend Commitment: 99th consecutive year of paying a quarterly cash dividend.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Duke Energy Corp (DUK, Financial) reported 2024 adjusted earnings per share of $5.90, within their guidance range.
- The company announced a 2025 earnings per share guidance range of $6.17 to $6.42, indicating a growth trajectory.
- Duke Energy Corp (DUK) has an $83 billion capital plan, driving a 7.7% earnings-based growth.
- The company successfully added 1,500 megawatts of solar power in Florida, enhancing its renewable energy portfolio.
- Duke Energy Corp (DUK) maintained a strong track record of regulatory execution, minimizing rate case exposure for 2025 and 2026.
Negative Points
- The company faced impacts from a historic hurricane season, which partially offset top-line growth.
- Duke Energy Corp (DUK) anticipates higher interest expenses and modest share dilution to fund its growing capital plan.
- There is a planned increase in O&M expenses due to deferred grid projects and generation outages from 2024.
- The Ohio-Kentucky subsidiary's ROE remains considerably below other subsidiary averages, indicating potential underperformance.
- The company is planning for a significant increase in equity funding, which may impact shareholder returns.
