Wells Fargo has revised its price target for CenterPoint Energy (CNP, Financial), raising it from $35 to $40, while maintaining an Equal Weight rating on the company's shares. This adjustment comes in light of a positive first-quarter update from CenterPoint Energy.
The company announced the addition of $1 billion to its capital expenditure plan, indicating substantial growth potential. Moreover, CenterPoint Energy has identified at least $3 billion of additional opportunities through the year 2030. Despite a less demanding rate case schedule, CenterPoint Energy Houston Electric (CEHE) is preparing to submit a filing for the Beryl recovery and securitization in the near future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for CenterPoint Energy Inc (CNP, Financial) is $37.71 with a high estimate of $42.00 and a low estimate of $32.11. The average target implies an downside of 0.51% from the current price of $37.90. More detailed estimate data can be found on the CenterPoint Energy Inc (CNP) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, CenterPoint Energy Inc's (CNP, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CenterPoint Energy Inc (CNP, Financial) in one year is $30.07, suggesting a downside of 20.66% from the current price of $37.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CenterPoint Energy Inc (CNP) Summary page.
CNP Key Business Developments
Release Date: February 20, 2025
- GAAP EPS (Q4 2024): $0.38
- Non-GAAP EPS (Q4 2024): $0.40
- Non-GAAP EPS (Full Year 2024): $1.62
- Non-GAAP EPS Growth (2024 over 2023): 8%
- 2025 Non-GAAP EPS Guidance Range: $1.74 to $1.76
- Capital Expenditures (Full Year 2024): $3.8 billion
- Revised Capital Investment Plan (Through 2030): $47.5 billion
- Houston Electric Rate Case Settlement: Annual revenue requirement decrease of $47 million
- Indiana Electric Rate Case: Annual revenue requirement increase of $80 million
- Minnesota Gas Rate Case Settlement: Revenue requirement increase of nearly $104 million for 2024 and 2025
- Ohio Gas Rate Case Filing: Revenue requirement increase of $99.5 million
- System Resiliency Plan Investment (2026-2028): $5.75 billion
- Transmission Tracker Revenue Increase: $63 million
- Distribution Tracker Revenue Increase: $100 million (revised filing anticipated)
- FFO-to-Debt Ratio (End of 2024): 13.6% (excluding storm-related costs)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CenterPoint Energy Inc (CNP, Financial) reported strong financial results with a non-GAAP EPS of $0.40 for Q4 and $1.62 for the full year 2024, marking an 8% growth over 2023.
- The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, indicating continued growth expectations.
- CenterPoint Energy Inc (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 filed a substantial system resiliency plan for Houston Electric, proposing a $5.75 billion investment to improve grid resiliency, which is expected to save customers over 1 billion outage minutes in extreme weather events.
- CenterPoint Energy Inc (CNP) is experiencing strong organic growth, particularly in Texas, with a projected 50% increase in peak demand in the Houston area by 2031, driven by diverse economic activities.
Negative Points
- The company faces risks and uncertainties related to forward-looking statements, which could result in actual results differing materially from projections.
- CenterPoint Energy Inc (CNP) is dealing with increased vegetation management costs, which may impact operational expenses in the near term.
- The company is transitioning its temporary generation units to an unregulated status, which may result in a temporary reduction in cash flow during the period they serve the San Antonio area.
- CenterPoint Energy Inc (CNP) is awaiting regulatory decisions on transmission voltage standards in Texas, which could impact future capital investment plans.
- The company is managing a busy regulatory cycle with multiple rate cases filed, which could pose challenges in achieving timely approvals and settlements.
