Morgan Stanley Raised MGE Energy (MGEE) Price Target During Utilities Review

MGE Energy, Inc. (NASDAQ:MGEE) is included among the Dividend Kings List: Top 15 Stocks.

On February 20, Morgan Stanley raised its price recommendation on MGE Energy, Inc. (NASDAQ:MGEE) to $77 from $73. The firm said it is updating price targets for the Regulated & Diversified Utilities and IPPs group in North America for January. In a research note to investors, the analyst added that utilities underperformed the S&P during the month. Looking ahead to Q4 earnings, Morgan Stanley expects discussions around data center pipelines to show more balance. The firm pointed to growing concerns about affordability and the political environment.

MGE Energy reported full-year 2025 earnings of $135.9 million, or $3.72 per share. That compares with $120.6 million, or $3.33 per share, in the same period a year earlier. For the fourth quarter of 2025, the company reported earnings of $23.3 million, or $0.64 per share. In the prior-year quarter, earnings were $22.0 million, or $0.61 per share.

Results in the electric segment improved during the year. Earnings from the segment rose by $11.3 million in 2025 compared with 2024. The increase was largely tied to the deployment of several renewable energy projects. The Darien Solar Project in Rock and Walworth counties began operations in March 2025. A few months later, in June, the Paris Battery Energy Storage System also came online. MGE owns 25 MW of solar capacity from the Darien Solar Project and 11 MW of battery capacity from the Paris BESS.

The gas segment also posted higher earnings. Segment earnings increased by $2.5 million in 2025 compared with the previous year. During 2025, gas retail therm deliveries rose about 14% from the prior year. The company said the increase was largely due to warmer-than-normal weather conditions in 2024.

MGE Energy, Inc. (NASDAQ:MGEE) operates as a public utility holding company. Its segments include regulated electric utility operations, regulated gas utility operations, nonregulated energy operations, transmission investments, and other activities.

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