Centerpoint Energy: Scotiabank maintains Sector Outperform, raises PT to $40.

Centerpoint Energy: Scotiabank maintains Sector Outperform, raises PT to $40.

In a positive development for CenterPoint Energy (CNP), Scotiabank analyst Andrew Weisel has raised the company's price target to $40, up from the previous $35. This bullish outlook comes with an Outperform rating, reflecting confidence in CNP's strategic positioning and ability to navigate economic uncertainties [1].

The average one-year price target from 15 analysts is $37.71, with a high estimate of $42.00 and a low estimate of $32.11. The consensus brokerage recommendation is also Outperform, with 19 firms rating CNP favorably [1].

Scotiabank's positive outlook is supported by CNP's strong financial performance. The company reported a non-GAAP EPS of $0.40 for Q4 2024 and $1.62 for the full year, marking an 8% growth over 2023. The 2025 non-GAAP EPS guidance range is $1.74 to $1.76, indicating continued growth expectations [1].

CNP has made significant progress in regulatory settlements, including a constructive settlement in the Houston Electric rate case, which is expected to benefit both customers and investors. The company has also filed a substantial system resiliency plan for Houston Electric, proposing a $5.75 billion investment to improve grid resiliency [1].

However, CNP faces risks and uncertainties, including increased vegetation management costs, a temporary reduction in cash flow due to the transition of temporary generation units, and regulatory decisions on transmission voltage standards in Texas. The company is also managing a busy regulatory cycle with multiple rate cases filed [1].

References:
[1] https://www.gurufocus.com/news/2805152/scotiabank-analyst-increases-centerpoint-energy-cnp-price-target-to-40-cnp-stock-news