Analyst Note| Charles Fishman, CFA |
We are increasing our fair value estimate for narrow-moat DTE Energy to $120 per share from $116 after the company reported 2020 second-quarter operating earnings and reaffirmed earnings and capital expenditure guidance. EPS for the recently ended quarter were $1.53 versus $0.99 in the same period last year. The strong results were due primarily to favorable weather, pension plan investment gains, and rate increases at the utilities. The Gas, Storage & Pipeline business benefited from the Blue Union acquisition.