Morgan Stanley Revises Duke Energy (DUK) Valuation Following Utility Sector Update

Duke Energy Corporation (NYSE:DUK) is included among the 10 Best Blue Chip Stocks to Buy for Your Retirement Portfolio.

Morgan Stanley Revises Duke Energy (DUK) Valuation Following Utility Sector Update

On May 21, Morgan Stanley lowered its price recommendation on Duke Energy Corporation (NYSE:DUK) to $132 from $141. It reiterated an Equal Weight rating on the shares. The firm said it updated price targets across the North American Regulated & Diversified Utilities and IPP sectors for April. The analyst also noted that utilities underperformed the broader S&P return during the month.

Earlier, on May 18, Truist analyst Richard Sunderland lowered the firm’s price goal on Duke Energy to $137 from $142. He maintained a Buy rating on the stock. The changes came as part of a broader research update on the Power and Utilities sector ahead of the American Gas Association’s Financial Forum. According to the analyst, the sector continues to benefit from rising investment tied to the ongoing data center wave, now entering its third year. Growth expectations have also continued to rise alongside those investments. The research note added that vertically integrated electric utilities are viewed as key beneficiaries as they build the infrastructure needed to support increasing power demand from data centers.

Duke Energy Corporation (NYSE:DUK) is an energy holding company. The company operates through two segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I).

While we acknowledge the risk and potential of DUK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DUK and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Dividend Stock Portfolio For Retirement: Top 12 Stock Picks and 10 Best June Dividend Stocks to Buy

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1