Morgan Stanley Raises MGE Energy Price Target to $77 as 2025 EPS Jumps
Morgan Stanley raised MGE Energy’s price target to $77 from $73, noting underperformance versus the S&P and balanced data center pipeline discussions. Full-year 2025 net income rose to $135.9 million ($3.72/share) from $120.6 million ($3.33) as electric earnings surged $11.3 million on 25 MW solar and 11 MW battery projects.
1. Price Target Increase
Morgan Stanley raised MGE Energy’s price target to $77 from $73 after updating its Regulated & Diversified Utilities outlook, highlighting underperformance versus the S&P and more balanced Q4 discussions on data center pipelines and affordability concerns.
2. Full-Year 2025 Earnings
MGE Energy reported 2025 net income of $135.9 million, or $3.72 per share, up from $120.6 million, or $3.33, in 2024, with fourth-quarter earnings at $23.3 million, or $0.64 per share, versus $22.0 million, or $0.61.
3. Electric Segment Growth
Electric segment earnings increased by $11.3 million in 2025 as the 25 MW Darien Solar Project began operations in March and the 11 MW Paris Battery Energy Storage System came online in June, expanding MGE’s renewable capacity.
4. Gas Segment Performance
Gas segment earnings rose by $2.5 million in 2025, driven by a 14% increase in retail therm deliveries, largely attributed to warmer-than-normal weather in 2024.