Dominion Energy Earns 'Buy' Rating Following Robust Growth Projections
Late last month, Dominion Energy Inc (NYSE: D) reported a first-quarter earnings beat.
The most substantial service hub globally is located in Dominion's service area in Virginia. According to PJM, it anticipates that its maximum load will increase by 5%-7% each year over the next 10 years. This growth will be largely fueled by the expansion of cloud services and artificial intelligence, according to Seaport.
The Dominion Energy Analyst: Angie Storozynski upgraded the rating for Dominion Energy from Neutral to Buy.
The Dominion Energy Thesis: The company is conducting a business review to identify the most efficient capital sources to improve its balance sheet and fund its robust capital expenditure, Storozynski said in the upgrade note.
Check out other analyst stock ratings.
“Based on media reports, D plans to sell its gas utilities (LDCs), but those are unlikely to attract strategic buyers,” the analyst wrote. “Instead, D could sell its electric/gas utility in SC (DESC), with SO and NEE as most likely buyers, we believe,” she added.
The stock’s P/E discount now appears “excessive,” given the “EPS upside from asset sales and AI-driven load growth, Storozynski further stated.
D Price Action: Shares of Dominion Energy rose by 1.28% to $50.50 on Monday.
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