BMO Capital increased its price target on CMS Energy (NYSE:CMS) to $80.00 from $79.00 on Monday, maintaining an Outperform rating on the utility's shares. At the time of the note, CMS Energy was trading at $71.98, with sell-side analyst targets spanning from $66 to $87 - a range that implies roughly 8% upside to the newly set target.
The higher target follows CMS Energy's reported fiscal year 2025 results. The company posted earnings per share of $3.61 for the year, a figure described as modestly above the high end of management's guidance and representing 8% year-over-year growth. Revenue for the period rose by 13.63% year over year. On a valuation basis, the stock trades at a price-to-earnings multiple of 20.45, which InvestingPro data flags as elevated relative to near-term earnings growth.
CMS Energy also made a small upward tweak to its 2026 guidance, now expecting adjusted EPS in a range of $3.83 to $3.90 per share - three cents above its initially projected band. BMO highlighted the company's refreshed five-year capital plan, now pegged at $24.1 billion. That plan represents an increase of $4.0 billion, or about 21%, from the prior outlook and, according to the firm, underpins long-term EPS growth at the top end of management's stated 6-8% compound annual growth rate target.
Regulatory developments remain an area of uncertainty. An administrative law judge has proposed a negative finding with respect to return on equity, though CMS Energy management expressed confidence in securing an outcome of 9.90% "or better." BMO suggested investors may monitor a forthcoming electric order for peer DTE for additional context on how regulators may be approaching returns.
Market characteristics for CMS Energy include a low beta of 0.48, indicating historically muted price volatility relative to the broader market. Nevertheless, InvestingPro analysis included in the note suggests the shares may be overvalued at current levels given the relationship between the P/E multiple and expected near-term earnings growth.
In related company news, CMS Energy reported fourth-quarter results for 2025 that the firm characterized as a robust financial performance. Revenue in the quarter came in well ahead of forecasts, while EPS matched analyst expectations. The earnings release was followed by a notable uptick in pre-market trading activity for the stock. These outcomes were cited as evidence of the company's ability to meet market projections as it moves into the next fiscal year.
For investors, the combination of a larger capital program, modest upward guidance revision and an earnings beat supports BMO's decision to raise the price target. That said, regulatory proceedings on allowed returns and valuation metrics cited by InvestingPro create ongoing variables that market participants will likely continue to watch closely.