RBC Capital Trims Duke Energy (DUK) Target in Utilities Sector Preview

Duke Energy Corporation (NYSE:DUK) is included among the 13 Best February Dividend Stocks to Buy.

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On January 23, RBC Capital analyst Stephen D’Ambrisi trimmed his price target on Duke Energy Corporation (NYSE:DUK) to $140 from $143 while maintaining a Sector Perform rating. The change came as part of a broader research note ahead of fourth-quarter earnings across the utilities sector. D’Ambrisi said that, over the past 18 months, shifting capital spending plans have pushed several utilities that usually update guidance in the fourth quarter to release earlier or off-cycle previews. Those updates led RBC to make adjustments to its models across the group.

Beyond near-term earnings, Duke Energy’s geographic footprint stands out. Most of the company’s nuclear, renewable, and fossil fuel assets sit in North and South Carolina, placing Duke between Virginia and Georgia, the top two states for new data center development. Nearly 3,000 data centers are currently under construction across the U.S., with 595 of them in Virginia alone. The state expects electricity demand to climb 153% by 2040 and has already begun looking to neighboring states, including Maryland, to help meet that surge.

That dynamic creates a meaningful opportunity for Duke. North Carolina operates on the same power grid as Virginia, and Virginia has now overtaken California as the largest energy-importing state in the country. As demand continues to build, Duke is well-positioned to benefit from growing power needs flowing out of the Virginia market.

Those tailwinds have already shown up in Duke’s financials, including a three-year revenue CAGR of 5.29%, a gross margin of 52.4%, and a net margin of 15.97%.

Duke Energy Corporation (NYSE:DUK) is an energy holding company with operations spanning electric and gas utilities. Its business is divided into two segments: Electric Utilities and Infrastructure and Gas Utilities and Infrastructure.

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