DTM - DTE Energy downgraded on valuation after outperforming other utilities

DTE Energy (DTE +0.9%) is downgraded to Equal Weight from Overweight with a $125 price target at Wells Fargo, as a valuation call after the stock has been one of the better performers in the utility sector, outperforming the S&P Utilities by ~700 bps. Wells' analyst Neil Kalton thinks DTE's strong relative performance reflects investor enthusiasm for the company's simplifications strategy, culminating with the DT Midstream (NYSE:DTM) spinoff, and continued strong execution at the core regulated utility franchises. "Our downgrade of DTE is in no way driven" by any inquiry stemming from last month's severe storm, Kalton says, seeing the potential for additional infrastructure investment opportunities. The DT Midstream spinoff, which began trading July 1 as a stand-alone company, is "worth keeping," Cash Builder Opportunities writes in a bullish analysis published on Seeking Alpha.

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DTE Energy downgraded on valuation after outperforming other utilities