DTE pitches 2 major new gas power plants, more renewables as coal goes offline

DTE Energy (DTE) shares fell after Morgan Stanley reduced its price target to $141 from $148, while maintaining an Overweight rating. The brokerage expects lower future upside, which may concern investors. DTE's steady profits and cash flow support investments in grid and data centers, but high debt and capital spending could limit financial flexibility and growth.

DTE Energy (DTE), a $27.1B energy company, has underperformed the Dow Jones Industrial Average (DOWI) with a 16.3% drop from its 52-week high. DTE stock is up 1.1% YTD, lagging DOWI's 8.4% gain. Q2 2026 adjusted EPS beat estimates at $1.32, but shares fell due to weaker utility performance. Analysts give DTE a 'Moderate Buy' rating with a mean price target of $155.20, a 19% premium to current levels.

DTE Energy (DTE) has 2.4 GW of signed data center deals and 5-6 GW in the pipeline, driving a $148.26 price target (13% upside). CEO Joi Harris confirmed Oracle's 1.4 GW and Google's 1 GW projects. DTE's $36.5B capital plan and 3.46% dividend yield support growth. Risks include regulatory scrutiny and equity issuance. Compared to CMS Energy (CMS) and WEC Energy (WEC), DTE's forward P/E of 16 is reasonable.

DTE Gas Co. plans to seek an additional rate increase, following a recent $74.52M approval by the Michigan Public Service Commission. The utility aims to modernize its natural gas system, with the new hike based on a 12-month period ending Sept. 30, 2028. Residential customers may see a 3.34% increase, while low-income credits rise to $58. The plan faces backlash from Michigan leaders, citing affordability concerns.

The Michigan Public Service Commission approved a $74.52 million rate increase for DTE Gas, less than half of the $162.7 million requested. The hike, effective immediately, will add $2.87 monthly for typical residential customers. The funds will support infrastructure upgrades and maintenance. The MPSC rejected $284.1 million for a compressor station project and $17.9 million in fleet costs. Low-income assistance credits were increased to $58, and outage credits to $44 daily.

Deutsche Telekom and T-Mobile US appointed executives from AWS and GE Vernova, respectively, reflecting a trend of cross-sector hiring for AI expertise. Deutsche Telekom's new head of product and technology, Jan Hofmeyr, previously worked at AWS and Comcast. T-Mobile US appointed Jessica Uhl, who has extensive experience in the energy sector. These moves highlight the convergence of telecoms, tech, and industrial sectors in the AI infrastructure economy, with networking playing a crucial role. A