RBC Capital Upgrades OGE Energy (OGE) to Outperform

RBC Capital analyst Stephen D\'Ambrisi upgraded OGE Energy (NYSE: OGE) from Sector Perform to Outperform with a price target of $54.00 (from $50.00).

The analyst comments: “We upgrade OGE to Outperform and raise our PT to $54, as we expect EPS growth to accelerate to ~10% CAGR (vs top half 5-7% guidance). After rolling in $1.5B 2025 SPP ITP spend, our 2030 EPS estimates are ~13% above the street, and we believe there is further positive estimate revision potential (~$0.24 or 6-7% to 2030 estimates) from 2026 RFP and 2026 SPP ITP opportunities. On our updated 2030 estimates, OGE currently trades at a ~5-6% P/E discount on our estimates versus a historical ~1-2% discount, which we believe does not reflect the accelerating growth profile.

Investors should watch for progress on three distinct sources of capital upside through 2H’26 and 2027. First, OGE expects the ~$1.5B Seminole-to-Shreveport 765kV line (SPP's 2025 ITP) to be added to the capital plan upon receipt of the notice to construct, expected Q4 2026 and hoped for before EEI - we raise our 2028-2030 estimates ~3-5% on inclusion of this capital. Second, we expect multiple generation pre-approval filings by year-end 2026, resulting from the 2026 RFP which addresses a ~1.8GW accredited capacity need in 2032. We expect OCC decisions by mid-to-late 2027, giving investors visibility into the resource pool & capex opportunity ahead of formal inclusion in the plan. Third, SPP's 2026 ITP final report is expected September 2026, with early planning maps showing 765kV transmission lines terminating at OGE substations; formal inclusion of any capex resulting from the 2026 ITP process is likely a late 2027/early 2028 event.”

For an analyst ratings summary and ratings history on OGE Energy click here. For more ratings news on OGE Energy click here.

Shares of OGE Energy closed at $45.99 yesterday.

You May Also Be Interested In

• Morgan Stanley Upgrades Americana Restaurants (AMR:UH) to Equalweight
• Bernstein SocGen Group Starts Americana Restaurants (AMR:UH) at Outperform
• Kepler Cheuvreux Downgrades DiaSorin SpA (DIA:IM) (DSRLF) to Hold