Dominion Energy (D) shares remain in focus on Aug. 20 after TD Cowen’s senior analyst Shelby Tucker issued a bullish research note in favor of the energy giant. Tucker upgraded the Richmond-headquartered firm this week to “Buy” and raised his price target to $80, indicating potential upside of about 19% from current levels.
TD Cowen’s bullish call is particularly significant given Dominion stock is already up about 20% versus its year-to-date low.
Why Is TD Cowen Bullish on Dominion Energy Stock
Tucker turned bullish on Dominion shares mostly because of the company’s pending merger with NextEra Energy (NEE).
The analyst assigned a 70% probability of successful completion of the transaction but said that even in the event of a failure, a substantial termination fee provides significant downside protection.
“We continue to view approval, potentially with incremental customer, workforce, or community related commitments, as the most likely outcome,” he told clients.
Note that Dominion Energy also currently pays a rather lucrative 3.91% dividend yield, which makes it even more attractive as a long-term holding for income-focused investors.
Options Pricing Is Also Bullish for D Shares
In his research note, the TD Cowen analyst also highlighted Dominion’s stable income profile as a basis for the bullish view.
A combination of a defensive utility cash flow, solid long-term operating earnings-per-share (EPS) growth guidance of up to 7%, and asymmetric upside potential makes the stock an attractive risk-adjusted candidate.
Despite significant year-to-date gains, Shelby Tucker sees the current price as offering compelling value for long-term investors looking for regulated utility stability.
Note that the options market agrees with his optimism as well, with a put-to-call ratio on contracts set to expire in mid-September at 0.38x currently, and the upper price of nearly $71 signaling potential for a 3.65% rally over the next four weeks.
What’s the Consensus Rating on Dominion Energy
While not nearly as constructive as TD Cowen, other Wall Street firms haven’t thrown in the towel on Dominion Energy either.
According to Barchart, while the consensus rating on Dominion shares sits at “Hold," the mean price target of about $72 indicates potential upside of more than 5% through the remainder of 2026.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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