Ladenburg Thalmann lowered its price target on OGE Energy (NYSE:OGE) to $42.50 from $43.50 while keeping a Neutral rating, the firm said on Tuesday. The change followed an update to the firm’s forecast that incorporates additional capital spending for transmission and generation projects that together approach $800 million.
The firm noted valuation assumptions that include expected accretion tied to OGE’s requested approval of a battery storage project slated for completion in 2027. While that battery project was not folded into Ladenburg Thalmann’s formal estimates, the firm indicated it would contribute roughly $0.02 to OGE Energy’s earnings per share if approved and completed as planned.
Despite the downward adjustment to its price target, Ladenburg Thalmann preserved its Neutral stance on the shares.
Other recent analyst activity
OGE Energy has been the subject of several other analyst moves in recent weeks. Wells Fargo downgraded the company from Equal Weight to Underweight, attributing the decision to valuation concerns and what it described as below-average growth prospects, and set a $39.00 price target.
BMO Capital initiated coverage with a Market Perform rating and a $45.00 price target, citing a more constructive fundamental view driven by generation capacity needs that could create capital deployment opportunities for the company.
Jefferies maintained a Buy rating on OGE Energy but reduced its price target from $95.00 to $91.00, noting a more conservative updated plan following the company’s Gas LDCs conference.
Corporate leadership update
On the corporate front, OGE Energy announced that Donnie O. Jones, Vice President of Utility Operations at subsidiary Oklahoma Gas and Electric Company (OG&E), intends to retire at the end of 2026. Jones manages utility operations for OG&E, which serves about 910,000 customers in Oklahoma and western Arkansas. The company has not provided details on succession or transition plans related to the announced retirement.
Implications for investors
These analyst adjustments and the executive retirement notice together offer investors multiple data points about OGE Energy’s near-term trajectory. The addition of nearly $800 million of transmission and generation spending is a notable factor in sell-side modeling, while the potential, though currently unmodeled, earnings accretion from the battery storage proposal represents a discrete upside should it receive approval and proceed on schedule.
The diverging analyst views - from downgrades and conservative target trims to newly initiated Market Perform coverage and maintained Buy ratings from other firms - underscore differing assessments of valuation, growth prospects, and capital opportunity tied to generation needs.
What remains unclear
Details on the battery storage project’s inclusion in regulatory approvals and the company’s succession plans for the OG&E utility operations leadership remain limited in public disclosures, and Ladenburg Thalmann’s estimates continue to exclude the battery project while acknowledging its potential earnings impact.
Collectively, the updates give stakeholders a range of information but leave certain execution and governance questions unresolved.