DUK Refresh: DEC Rate Case Moves Ahead and Valuation Appears Attractive; Trimming PT to $139 from $141

研报英文原文证据摘录

DUK Refresh: DEC Rate Case Moves Ahead and Valuation Appears Attractive; Trimming PT to $139 from $141

Investment Thesis

Our rating on shares of Duke Energy is Buy. Duke is one of the largest electric utilities that we believe is well-positioned to benefit

from its large load backlog, diverse jurisdictions, and continued execution. Although Duke is one of the largest in the space, it has

a relatively conservative large load backlog and opportunity set, of which we believe represents upside from both a capital andUTILITIES earnings standpoint. Duke also covers a diverse geographical footprint, servicing the Carolinas, Florida, Ohio, and Indiana, areas

experiencing solid large load growth. Lastly, the company has been building a track record of execution on meeting financial targets

over the last few years and has taken a more innovative approach to financing its long-term growth. The company's conservative

strategy in curating its large load backlog in our view emphasizes Duke's focus on execution, but note this also leaves room forEQUITY upside once these goals are met. The stock currently trades at a discount compared to other electric utilities within our coverage,

but we believe it should trade more in-line with other premium large-cap utilities given its scale, geographical footprint and capital

plan, and potential for higher growth rates beyond 2028 and into the next decade.

Upcoming Catalysts Price Performance

$155RESEARCH Regulatory follow-through. As typical with most utilities it will be key for DUK to

successfully navigate some of the regulatory proceedings this year including the North $150

Carolina rate cases, Ohio rate case, Piedmont South Carolina rate case, the Carolinas $145

Resource Plan, and completion of the DEC/DEP combination. $140

$135