Dominion Energy rated Strong Buy with $96 target on AI infrastructure growth and NextEra merger potential.

Dominion Energy is rated a Strong Buy with a price target of $96 per share due to its expanding role in AI and data center infrastructure. Key growth drivers include increasing data center load, execution of CVOW projects, storage capacity, and a proposed merger with NextEra, which would create a larger platform with over 130GW of opportunities and an expected 9% EPS growth. EBITDA is projected to grow from $8.5 billion to $11.271 billion by 2029-2030, driven by data center load conversion. Risks include regulatory challenges for the merger, valuation concerns linked to NextEra's stock, and balance sheet pressures.