Company Reports

We are reaffirming our $96 per share fair value estimate for WEC Energy after Microsoft announced a significant expansion of its data center campus in Southeastern Wisconsin. Our expectations for WEC Energy to achieve the high end of management's 6.5% to 7% annual earnings growth guidance range through 2028 remain unchanged. Our narrow moat rating remains unchanged.

We are reaffirming our $96 per share fair value estimate for WEC Energy after the company reported first-quarter earnings of $1.97 per share, up from the $1.61 per share in the same year-ago period. Management reaffirmed 2024 earnings guidance of $4.80-$4.90 per share, in line with our expectations. Our narrow moat rating remains unchanged.

Data center electricity demand growth is a key source of upside for US utilities that we don't think the market appreciates. We consider the sector 9% undervalued as of April 8 in part because we expect electricity demand growth to top market expectations, requiring substantial energy infrastructure investment and boosting utilities' earnings growth.

WEC Energy Group is the largest Midwest utility, with approximately $29 billion of rate base and derives most of its earnings derived from regulated operations. Nearly 75% of earnings come from areas with constructive Wisconsin and Federal Energy Regulatory Commission regulation. Its regulated-like commercial renewable energy business accounts for the remainder of earnings.

We are reaffirming our $96 per share fair value estimate for WEC Energy after the company reported full-year 2023 earnings of $4.63 per share, up from the $4.45 per share reported in 2022. Management initiated 2024 earnings guidance of $4.80 to $4.90 per share, in line with our expectations. The company recently increased its dividend 7%, its 21st consecutive annual increase.

We are maintaining our $96 fair value estimate for WEC Energy after the incorporating several positive financial updates.

WEC Energy Group is the largest Midwest utility, with approximately $26.5 billion of rate base and derives most of its earnings derived from regulated operations. Nearly 75% of earnings come from constructive Wisconsin and Federal Energy Regulatory Commission regulation. Its regulated-like commercial renewable energy business accounts for the remainder of earnings.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

We are reaffirming our $96 per share fair value estimate for WEC Energy after the company reported third-quarter earnings of $1.00 per share, up from the $0.96 per share reported in the same year-ago period. Our narrow moat rating is unchanged.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

WEC Energy Group is the largest Midwest utility, with approximately $26.5 billion of rate base and derives most of its earnings derived from regulated operations. Nearly 75% of earnings come from constructive Wisconsin and Federal Energy Regulatory Commission regulation. Its regulated-like commercial renewable energy business accounts for the remainder of earnings.

Following WEC Energy's second-quarter earnings per share of $0.92, up from $0.91 reported in the year-ago period, we are maintaining our $96 fair value estimate. Our narrow moat rating is unchanged.

WEC Energy Group is the largest Midwest utility, with approximately $26.5 billion of rate base and derives most of its earnings derived from regulated operations. Nearly 75% of earnings come from constructive Wisconsin and Federal Energy Regulatory Commission regulation. Its regulated-like commercial renewable energy business accounts for the remainder of earnings.

We are maintaining our $96 fair value estimate for WEC Energy Group after the company reported first-quarter earnings per share of $1.61, down from $1.79 in the year-ago period. The company reaffirmed its long-term growth target of 6.5%-7%, in line with our 7% growth forecast. We expect dividend growth in line with earnings growth.

WEC Energy Group is the largest Midwest utility, with approximately $26.5 billion of rate base and most of its earnings derived from regulated operations. Nearly 75% of earnings come from constructive Wisconsin and Federal Energy Regulatory Commission regulation.

We are maintaining our $96 per share WEC Energy Group fair value estimate after the company reported full-year 2022 earnings of $4.45 per share, up from $4.11 in 2021. This was above management's previously increased guidance range of $4.38 to $4.40. Our narrow moat and stable moat trend remain unchanged.

WEC Energy Group is the largest Midwest utility, with approximately $25 billion of rate base and the majority of earnings derived from regulated operations. Nearly 80% of earnings come from constructive Wisconsin and Federal Energy Regulatory Commission regulation.

We are maintaining our $95 per share WEC Energy Group fair value estimate after the company reported third-quarter earnings of $0.96 per share, up from $0.92 in the same year-ago period. Management narrowed its full-year operating earnings guidance to $4.38-$4.40, from the previous range of $4.36-$4.40, in line with our estimate. Our narrow moat and stable moat trend remain unchanged.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.