Mizuho has increased its 12-month price target for WEC Energy Group to $121.00 from $117.00 while maintaining an Outperform rating on the stock. Shares are trading near $112 and have returned 14.8% over the past year. Technical indicators suggest the stock's relative strength index (RSI) may be in overbought territory.
On the fundamentals, WEC reported 2025 earnings per share of $5.27, narrowly surpassing the Street consensus of $5.25. Management has provided a 2026 EPS guidance range of $5.51 to $5.61. For the current year, the company is forecasting an EPS compound annual growth rate of 6.5% to 7%, and it outlined a long-term growth expectation of 7% to 8% measured from the midpoint of guidance. The shares are trading at a price-to-earnings ratio of 23.6 and the stock's PEG ratio is 0.75.
One material development affecting WEC's capital plan is an expansion of demand from a major customer. Microsoft is adding 500 megawatts to its site, bringing the company's forecast demand from that location to 2.6 gigawatts through 2030. That increased demand has been reflected in WEC's planning as approximately $1 billion of additional capital investment. Mizuho expects the company's equity needs to correspond to the updated capital expenditure forecast.
Regulatory activity also shapes the near-term outlook. WEC expects a decision on its Very Large Customer tariff in May and plans to file a Wisconsin General Rate Case in April. In Illinois, a proposed settlement would resolve about $2.3 billion of outstanding dockets, which include reconciliation matters tied to the Qualified Infrastructure Plant (QIP) mechanism.
For income-focused investors, WEC presents a record of shareholder distributions: the company has paid dividends for 56 consecutive years and has increased its dividend for 22 straight years, producing a current yield of 3.4%.
WEC's most recent quarter produced mixed results. Fourth-quarter EPS was $0.97, missing expectations of $1.38 by 29.71%. By contrast, quarterly revenue came in at $2.54 billion, beating forecasts by 12.89%, underscoring resilient sales performance during the period. These results, alongside the capital plan and regulatory timeline, have coincided with investor optimism reflected in pre-market trading activity.
What this means
- Mizuho's price-target increase reflects anticipated growth driven by large corporate demand and the associated rise in capital spending.
- Regulatory decisions in multiple jurisdictions and the outcome of rate cases and tariff reviews will be material to near-term earnings and cash flow.
- Mixed quarterly metrics illustrate divergence between top-line strength and near-term EPS pressure.