BofA Securities analyst Paul Cole downgrades $Entergy (ETR.US)$ to a hold rating, and sets the target price at $154.
According to TipRanks data, the analyst has a success rate of 76.9% and a total average return of 7.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Entergy (ETR.US)$'s main analysts recently are as follows:
Entergy's recent announcement alongside its Q3 earnings highlighted an updated strategic business plan which includes a higher forecast for capital expenditures, increased sales growth expectations, enhanced EPS guidance, and an accelerated EPS growth rate. Additionally, the company has revealed a service agreement with a significant customer in Louisiana necessitating the construction of three new combined cycle units, and it is exploring the development of nuclear units. While the strategic update is acknowledged for its value creation, there is also an acknowledgment of the execution risks associated with these ambitious plans.
Entergy's prospects for growth and risk have improved, with industrial sales contributing to an earnings increase that is projected to surpass peers at a rate of 8%-9%. Additionally, regulatory issues in Louisiana have been addressed in a more constructive manner than anticipated. Although the risk associated with hurricanes remains a structural challenge, the shares now present a more balanced risk/reward scenario.
Entergy's recent report exceeding third quarter EPS expectations, coupled with an updated EPS guidance that raises the lower end for 2024, has been acknowledged. The company also offered several fundamental updates which have led to an early projection for the 2026-2028 EPS growth target to increase to 8%-9%. The company's continuous fundamental performance and above-average EPS growth coupled with a conservative approach have transformed Entergy's investment narrative into a notably premium one.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
