Key Takeaways From CenterPoint Energy Analyst Ratings

Analysts' ratings for CenterPoint Energy CNP over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $29.5, along with a high estimate of $31.00 and a low estimate of $28.00. This current average reflects an increase of 2.61% from the previous average price target of $28.75.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of CenterPoint Energy's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CenterPoint Energy. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CenterPoint Energy compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for CenterPoint Energy's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into CenterPoint Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on CenterPoint Energy analyst ratings.

Discovering CenterPoint Energy: A Closer Look

CenterPoint Energy owns a portfolio of businesses. Its regulated electric utilities provide transmission and distribution services to more than 2.5 million customers in the Houston area, southern Indiana, and west central Ohio. The company has natural gas distribution systems in six states serving approximately 4 million customers.

Understanding the Numbers: CenterPoint Energy's Finances

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining CenterPoint Energy's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -2.26% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.

Net Margin: CenterPoint Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): CenterPoint Energy's ROE stands out, surpassing industry averages. With an impressive ROE of 2.67%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): CenterPoint Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.66% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: CenterPoint Energy's debt-to-equity ratio stands notably higher than the industry average, reaching 1.91. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.