Analyst Ratings February 18, 2026

Mizuho Lifts DTE Energy Price Target to $155 Citing Data Center Momentum and Regulatory Developments

Analyst keeps Outperform stance as utility advances near-term data center pipeline and confirms near-term outlook

By Sofia Navarro DTE
Mizuho Lifts DTE Energy Price Target to $155 Citing Data Center Momentum and Regulatory Developments
DTE

Mizuho raised its price target for DTE Energy to $155 from $144 while maintaining an Outperform rating, pointing to progress in the company’s roughly 3 gigawatt near-term data center pipeline and recent regulatory and operational developments. The new target implies upside from DTE’s current trading level of $144.69. Management highlighted support for increased reliability spending and a commission decision on the company’s electric rate case is expected shortly. DTE also reported a fourth-quarter earnings beat and affirmed a 2026 outlook at the lower end of consensus.

Key Points

  • Mizuho raised its DTE Energy price target to $155 from $144 and maintained an Outperform rating - impacts the utilities sector and investor sentiment.
  • The company is in late-stage talks with a hyperscaler within an approximately 3 gigawatt near-term pipeline, with final terms expected in the coming weeks - relevant to data center and communications infrastructure sectors.
  • DTE reported a fourth-quarter earnings beat, affirmed a 2026 outlook at the lower end of consensus, and highlighted expanded reliability spending, including an Infrastructure Recovery Mechanism of about $1 billion and $200 million of pole-top maintenance pulled into 2026 - this affects utilities operations and capital expenditure planning.

Mizuho raised its price objective on DTE Energy to $155 from $144 on Wednesday and left its Outperform rating unchanged. The revised target implies potential upside from DTE’s then-current share price of $144.69. Analyst targets in the market cover a range from $139 to $168.

The brokerage firm pointed to movement in DTE’s data center pipeline as a material driver of the change. DTE is in late-stage negotiations with a hyperscaler for work within an approximately 3 gigawatt near-term pipeline, and Mizuho said the company expects to finalize terms in the coming weeks. The analyst note added that hyperscalers plan to engage more directly with local communities as they pursue data center projects.

Regulatory developments are also front and center for the utility. DTE expects a final commission decision on its electric rate case on Thursday and has reiterated confidence in achieving a 9.9% return on equity. DTE currently delivers a 12% return on equity and has a market capitalization of $30.05 billion.

Company management emphasized broad internal backing for reliability investments. That includes expanding the Infrastructure Recovery Mechanism to about $1 billion and a management recommendation to pull forward $200 million of pole-top maintenance into 2026. Mizuho also noted that recent administrative law judge recommendations in a CMS case have prompted market reaction that, in the firm’s view, underweights Michigan’s regulatory consistency and DTE’s execution. Mizuho said it increased its price target in part based on prevailing market multiples.

Dividend stability remains a feature of DTE’s profile. The firm has maintained dividend payments for 56 consecutive years and currently yields 3.22%.


Operational results contributed to recent investor interest. DTE reported fourth-quarter earnings that exceeded analyst expectations and confirmed its 2026 outlook at the lower end of consensus estimates. While the 2026 guidance sits at the lower range of analyst projections, the company’s recent earnings beat was highlighted as a sign of strong quarterly performance.

DTE Energy operates as a regulated utility providing electric and natural gas distribution services to customers in Michigan. The company’s mix of regulated utility operations, infrastructure spending plans and engagement with hyperscalers on data center opportunities were central to Mizuho’s assessment and the subsequent price target increase.

Investors will be watching the closing stages of hyperscaler negotiations, the imminent commission decision on the rate case, and how management executes on the expanded reliability program and the pulled-forward maintenance spend scheduled for 2026.

Risks

  • A final commission decision on the electric rate case is imminent and could affect allowed returns and regulatory outcomes - this is a regulatory risk for the utilities sector.
  • Late-stage negotiations with a hyperscaler have not been finalized, so expected pipeline contributions remain uncertain until terms are signed - this is an execution risk for the data center pipeline.
  • Market reactions to administrative law judge recommendations in a CMS case have introduced volatility and could cause short-term pricing dislocations that may not reflect regulatory consistency or company execution - this is a market/regulatory sentiment risk.

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