Dominion Energy Stock Set to Surge as Analysts Boost Targets on Renewables

Dominion Energy’s stock is currently trading between $60 to $61 per share, with a recent price of approximately $61.05. The stock offers a dividend yield of about 4.4%, equating to an annual dividend of around $2.67 based on the current price. Dominion has a strong history of dividend payments, having consistently provided dividends for 43 consecutive years.

Analyst Targets Boosted for Dominion Energy

Analysts on Wall Street have adjusted their price targets for Dominion Energy, reflecting optimism in the company’s future growth. Morgan Stanley has increased its 12-month target to $66, while both Barclays and Bank of America set their targets at $63. Evercore has a slightly higher target of $67, aligning with the consensus target in the low $60s.

Earnings Report and Guidance

The third quarter earnings report for 2025 is scheduled for October 31, with a consensus expected earnings per share (EPS) of around $0.93, compared to $0.98 from the same period last year. Dominion reaffirmed its full-year EPS guidance for 2025, projecting earnings between $3.28 and $3.52. Analysts from Bank of America predict that the company’s third quarter performance will benefit from increased rates and sales in natural gas, despite facing higher operational costs.

Focus on Renewable Energy

• Dominion is undertaking a significant clean energy initiative, planning over $50 billion in capital investments by 2029.
• This effort aligns with the rising energy demands from hyperscale data centers, particularly in Virginia.
• The company has contracted about 40 gigawatts (GW) of capacity, with ambitions to double this figure, forecasting annual EPS growth of 5-7%.

Progress on Offshore Wind Projects

Dominion’s Coastal Virginia Offshore Wind (CVOW) project, which aims to produce 2.6 GW of energy, is over 50% complete. The company anticipates generating its first power in the first quarter of 2026, with full operational capability expected by late 2026. This project is set to supply clean energy to approximately 660,000 homes, despite facing political challenges.

Company Valuation and Customer Base

Currently, Dominion trades at a forward price-to-earnings (P/E) ratio of approximately 19, which is below the average for the utility sector. The company’s projected price-to-earnings growth (PEG) ratio stands at about 1.3. Dominion Energy serves around 3.6 million electric customers and 0.5 million gas customers across Virginia, North Carolina, and South Carolina, operating under regulated rates.

Solid Performance and Future Outlook

Dominion’s stock has increased roughly 6% in the past month and currently approaches its 52-week high of $62.52, with a market capitalization of around $52 billion. The company’s dividend yield, maintaining at 4.4%, presents an attractive option for investors amid market volatility.

Looking forward, the earnings call on October 31 will be pivotal for monitoring Dominion’s performance and any updates on its financial strategies. The successful rollout of the CVOW project and timely approvals for rate cases in Virginia and North Carolina are crucial factors influencing the company’s next year.

If Dominion continues to meet its milestones, it may be well-positioned for further stock appreciation. Analysts unanimously agree that the company’s fundamentals remain robust, which further justifies their increased price targets.