Forecasting The Future: 5 Analyst Projections For CenterPoint Energy

Comments
Loading...

Across the recent three months, 5 analysts have shared their insights on CenterPoint Energy CNP, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 1 1 1 0
Last 30D 0 0 0 1 0
1M Ago 0 0 0 0 0
2M Ago 2 1 0 0 0
3M Ago 0 0 1 0 0

Analysts have set 12-month price targets for CenterPoint Energy, revealing an average target of $33.5, a high estimate of $37.00, and a low estimate of $30.00. Surpassing the previous average price target of $30.50, the current average has increased by 9.84%.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of CenterPoint Energy among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Nicholas Campanella Barclays Raises Underweight $30.00 $29.00
Paul Fremont Ladenburg Thalmann Announces Buy $34.50 -
Andrew Weisel Scotiabank Raises Sector Outperform $35.00 $30.00
William Appicelli UBS Raises Buy $37.00 $31.00
David Arcaro Morgan Stanley Lowers Equal-Weight $31.00 $32.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CenterPoint Energy. This information provides 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CenterPoint Energy's market position. Stay informed and make well-informed 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.

CenterPoint Energy: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, CenterPoint Energy faced challenges, resulting in a decline of approximately -0.22% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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: CenterPoint Energy's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 10.4%, the company may face hurdles in effective cost management.

Return on Equity (ROE): CenterPoint Energy's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.85%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): CenterPoint Energy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.46%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.89.

What Are Analyst Ratings?

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

Overview Rating:
Speculative
50%
Technicals Analysis
100
0100
Financials Analysis
20
0100
Overview
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!