UPDATE: Citigroup Reiterates Neutral Rating, Raises PT for DTE Energy

In a company update published earlier today, Citigroup Inc. reiterated its Neutral rating for DTE Energy Company (NYSE: DTE) and raised its price target from $53.00 to $56.00.

Citigroup went on to say “We believe DTE is fairly-valued when taking into account strong rate base growth prospects at its core Michigan utilities and our assessment of the remaining non-utility businesses. Our Neutral outlook incorporates a view that the share price now reflects a balance between Michigan's materially-improved regulatory environment and current valuation levels. We expect the company to grow EPS from $3.72/share in FY '11 to $4.16/share in FY ‘14 primarily due to growth in rate base and a return to more reasonable levels of authorized equity returns at both utilities coupled with modest recoveries at Gas Midstream and Power and Industrial Projects. We project a return to dividend expansion year-over-year post 2010 when growth should more closely mirror DTE Energy's true earnings growth trajectory over the long term. That being said, shares appear fully priced at these levels.”

DTE Energy Company closed on Friday at $56.41.