Goldman Sachs has upgraded Duke Energy from Neutral to Buy, assigning a $132 price target. This upgrade reflects growing confidence in Duke’s long-term growth strategy and improved regulatory clarity, especially in its core Southeast markets.
⚡ The utility giant has demonstrated stronger-than-expected operational efficiency and cost control, positioning it well in an era of rising electricity demand and transition toward cleaner energy. Recent rate case outcomes in North and South Carolina provide clearer earnings visibility and show management’s ability to navigate regulatory landscapes effectively.
🌱 Duke’s pivot to renewables is no longer seen as a drag on earnings but as a forward-looking investment. Clean energy and grid modernization projects are expected to enhance long-term returns, and Goldman views these as underappreciated by the broader market.
💰 On the dividend front, Duke offers a yield of around 4.5%, well-supported by its stable, regulated earnings base. With a payout ratio around 70%, the dividend appears sustainable with potential for continued modest growth. Duke has raised its dividend for more than 15 consecutive years, making it a core holding for income-focused investors.
Duke’s combination of reliable income, regulatory clarity, and growing clean energy momentum underpins Goldman’s more bullish stance.