BUZZ-Citigroup raises PT on DTE Energy

Reuters10-29

** Citigroup raises price target on U.S.-based utility company DTE Energy to $142 from $132 on third-quarter profit beat

** New price target represents a 12% upside to the stock's last close

** Raises PT as DTE signaled a meaningful increase to its $25 bln capex plan with new generation and reliability spend to upgrade the existing electric and gas grids

** Says that although Ford's BlueOval City plant has delayed EV production to 2027 from 2025 previously, it will only minimally impact DTE since the co has signed power purchase agreements with Ford, which typically include "take or pay" provisions

** Take or pay provision is a contractual clause that requires the buyer (here Ford) to pay for a certain product or service whether they use it or not

** Adds DTE could potentially redirect this power to other industrial customers within the Tennessee area

** 11 of 20 brokerages rate the stock "buy" or higher, 9 "hold"; median PT is $137 - LSEG data

** Up till last close, stock is up 14.85% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))

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