Morgan Stanley analyst David Arcaro upgrades $Entergy (ETR.US)$ to a hold rating, and adjusts the target price from $116 to $150.
According to TipRanks data, the analyst has a success rate of 55.0% and a total average return of 9.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Entergy (ETR.US)$'s main analysts recently are as follows:
Entergy has revised its strategic business plan, revealing an increased forecast for capital expenditures, sales growth, EPS guidance, and an enhanced EPS growth rate. Additionally, the company has announced a service agreement with a significant Louisiana customer, necessitating the construction of three new combined cycle units. They are also exploring the development of nuclear units. While the updated strategy is acknowledged for its potential to create value, it also introduces execution risks, which are noted alongside the current valuation.
The company is now perceived to have a more favorable growth and risk outlook, with industrial sales contributing to an earnings increase that surpasses its peers at a rate of 8%-9%. Additionally, regulatory concerns in Louisiana have reached a resolution that was more positive than anticipated. Despite the ongoing structural challenges posed by hurricane risk, the current valuation of the shares presents a more equitable balance of risk and reward.
Following a robust quarter, the company has explored the potential to incorporate carbon capture and nuclear technology into its fleet, aiming to cater to the significant load growth in its service area.
Note:
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