WEC Energy Group Inc: Strong 2q Earnings, Focus on Data Center Growth

研报英文原文证据摘录

WEC Energy Group Inc: Strong 2q Earnings, Focus on Data Center Growth

Forecast returns

Forecast price appreciation 15.3%

Forecast dividend yield 3.5%

Forecast stock return 18.8%

Market return assumption 9.3%

Forecast excess return 9.5%

Company Description

WEC Energy Group operates electric generation and distribution and natural gas distribution

utility assets. The company services approximately 4.6m customers in Wisconsin, Illinois,

Michigan, and Minnesota. WEC's assets comprise 71,700 miles of electric distribution lines,

52,000 miles of natural gas distribution and transmission lines, and 7.7 GW of power plant

capacity. WEC also owns 60% of American Transmission Company, an electric transmission

company. The company is headquartered in Milwaukee, WI.

Valuation Method and Risk Statement

We value WEC at $131 per share which is a 5% premium to the RU average P/E multiple or

20x our 2028 EPS estimate of $6.55. The premium reflects our group valuation bias (5%

premium), as well as WEC's 2nd quartile EPS growth (2% premium) and 3rd quartile

regulatory ranking (2% discount). We identify the following risk factors for the sector overall:

rising interest rates; regulatory and policy risks; operational risks; construction risks;

cybersecurity risk to the transmission grid and/or customer data, and extreme weather events.

We identify the following company specific risks for WEC, including: risk related to its

investment interest in American Transmission Company including operational and ROE

complaints; related to the Chicago gas main replacement program including expense

recovery and execution.

First Read: WEC Energy Group Inc 29 July 2026 ab 2