On Wednesday, WEC Energy Group (NYSE:WEC) shares, a utility company with a market capitalization of $29.48 billion, saw its price target increased by Ladenburg Thalmann from $79.50 to $95.50, while the firm retained a Neutral rating on the stock.
The adjustment comes in the wake of Microsoft (NASDAQ:MSFT)'s announcement regarding its data center construction plans in Mount Pleasant, Wisconsin. According to InvestingPro data, WEC has maintained a track record of 21 consecutive years of dividend increases, currently offering a 3.83% yield. The technology giant has decided to pause the development of a significant portion of the project.
Microsoft (NASDAQ:MSFT), which is not rated by Ladenburg Thalmann, revealed that it would continue with the construction of a $3.3 billion data center complex. This facility, which covers a 215-acre site, is expected to be completed later this year.
However, the development of the remaining approximate 800-acre site has been temporarily halted. Microsoft anticipates that the review of this part of the project will take several months. WEC Energy Group, known for its generally low price volatility according to InvestingPro analysis, trades at a P/E ratio of 22.89.
In response to Microsoft's announcement, analysts at Ladenburg Thalmann have made adjustments to their financial estimates for WEC Energy Group for the years 2024 through 2026 and have also initiated their forecasts for the years 2027 and 2028. The revised price target reflects these updated projections, although the firm's stance on WEC Energy Group's stock remains unchanged at Neutral.
WEC Energy Group's stock performance will be watched closely by investors as the situation with Microsoft's data center project unfolds. The project's completion is a significant event, as it represents a major investment in the area and has implications for local infrastructure and energy demand.
The update from Microsoft and the subsequent price target change for WEC Energy Group are important pieces of information for shareholders and potential investors. They mark ongoing developments in the energy and technology sectors, particularly in the context of large-scale infrastructure projects.
For deeper insights into WEC's financial health, which InvestingPro rates as FAIR, along with access to 12 additional ProTips and comprehensive valuation metrics, investors can explore the full Pro Research Report available on the platform.
In other recent news, WEC Energy Group has been the subject of significant developments. The company recently concluded a sizeable electric and gas rate case in Wisconsin, which is expected to contribute to its fiscal year 2025 earnings per share (EPS) guidance of $5.17-$5.27 per share.
Barclays (LON:BARC) upgraded WEC Energy's stock from 'Underweight' to 'Equalweight' and increased the price target to $93. BofA Securities also upgraded WEC Energy's stock to 'Neutral' and raised the price target to $98.00, citing the company's robust capital spending plan and strong balance sheet.
Recent developments in WEC Energy's executive compensation metrics align executive pay with both financial performance and operational and social goals. The company announced steady growth in its Q3 2024 earnings, with adjusted earnings of $0.82 per share, and reaffirmed its full-year 2024 earnings guidance of $4.80 to $4.90 per share.
Lastly, the company unveiled its largest-ever capital plan, amounting to $28 billion over five years, to support increased demand and transition towards renewable energy.
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