Entergy ETR Keeps Strong Buy Rating with $103.00 Price Target

J.P. Morgan analyst Jeremy Tonet maintains a Buy rating on Entergy with a price target of $103.00. The company has a Strong Buy analyst consensus and a price target consensus of $93.91. Entergy has a one-year high of $92.40 and a one-year low of $59.05. Corporate insider sentiment is negative, with 168 insiders selling their shares over the past quarter.

The Louisiana Public Service Commission (LPSC) has approved Entergy Louisiana's plans to build three new combined cycle generation facilities to support Meta's upcoming data center in Richland Parish. This approval marks a significant step towards enhancing the state's electric grid and accommodating future energy demands.

Under the agreement, Entergy Louisiana will construct two combined cycle plants in Richland Parish, with an expected operational date in late 2028, and a third facility at its existing Waterford site in St. Charles Parish by the end of 2029. Additionally, the Commission authorized Entergy Louisiana to procure up to 1,500 MW of solar resources through an expedited certification process [1].

The Richland Parish data center project, first announced in 2024, is one of the largest private capital investments in Louisiana's history. Entergy Louisiana has already begun construction on key infrastructure, including a pivotal substation to support the facility, and plans to invest $6 billion in electric infrastructure to power the project [2].

Meta has pledged to match its electricity use on-site with 100% clean and renewable energy, committing to interconnect at least 1,500 MW of new renewable generation to the grid through Entergy's Geaux Zero program. The company's $10 billion investment in the data center campus is expected to transform the local economy and create significant job opportunities [1].

Entergy Louisiana's president and CEO, Phillip May, highlighted the project's importance, stating, "These investments will help power one of the most advanced data centers in the world and will also reinforce our grid, create economic opportunity, and support a more sustainable energy future across Louisiana" [1].

The approval of these infrastructure upgrades comes amidst a backdrop of positive analyst sentiment. J.P. Morgan analyst Jeremy Tonet maintains a Buy rating on Entergy with a price target of $103.00. The company has a Strong Buy analyst consensus and a price target consensus of $93.91. However, corporate insider sentiment remains negative, with 168 insiders selling their shares over the past quarter [3].

References:
[1] https://www.power-eng.com/gas/combined-cycle/entergy-louisiana-gets-approval-to-build-3-new-combined-cycle-plants-to-power-huge-meta-data-center/
[2] https://www.nsenergybusiness.com/news/entergy-gains-lpsc-approval-for-meta-linked-infrastructure-upgrades/
[3] (Source for analyst sentiment and stock performance not provided in the given materials)