CenterPoint Energy Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on CenterPoint Energy CNP in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated CenterPoint Energy and provided 12-month price targets. The average target is $29.75, accompanied by a high estimate of $32.00 and a low estimate of $29.00. Highlighting a 2.46% decrease, the current average has fallen from the previous average price target of $30.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive CenterPoint Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to CenterPoint Energy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CenterPoint Energy compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of CenterPoint Energy's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CenterPoint Energy's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on CenterPoint Energy analyst ratings.

Unveiling the Story Behind CenterPoint Energy

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 serving approximately 4 million customers.

A Deep Dive into CenterPoint Energy's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining CenterPoint Energy's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -19.51% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 8.8%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): CenterPoint Energy's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.99%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): CenterPoint Energy's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.49%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.93.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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