Duke Energy (NYSE:DUK) was lifted to Outperform from Sector Perform at RBC Capital on Wednesday, with analysts raising the firm's price target on the stock to $113 from $101 per share.
Analysts told investors that Duke Energy has entered 2024 from a position of strength "with a 100% regulated portfolio, premium regulatory constructs backing up EPS reliability, and a strengthening balance sheet."
"While investors have historically been concerned with DUK's more significant use of parent debt, we believe the potential introduction of equity and DUK keeping parent-level debt in the low 30% range will help alleviate some concerns," said the analysts.
Even with DUK being one of the top performers in the sector in 2023, RBC Capital believes it will trade in line or close to premium peers in 2024.
"DUK achieved constructive regulatory outcomes with multi-year rate plans (MYPR) in NC, providing earnings visibility. We believe the key to gaining investor confidence will be earnings execution," the analysts concluded.