6 analysts have expressed a variety of opinions on CenterPoint Energy (NYSE:CNP) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $31.83, a high estimate of $37.00, and a low estimate of $29.00. This current average has increased by 6.81% from the previous average price target of $29.80.
Breaking Down Analyst Ratings: A Detailed Examination
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 |
|---|---|---|---|---|---|
| William Appicelli | UBS | Raises | Buy | $37.00 | $31.00 |
| David Arcaro | Morgan Stanley | Lowers | Equal-Weight | $31.00 | $32.00 |
| Andrew Weisel | Scotiabank | Raises | Sector Perform | $30.00 | $28.00 |
| Sarah Akers | Wells Fargo | Raises | Equal-Weight | $32.00 | $28.00 |
| David Arcaro | Morgan Stanley | Raises | Equal-Weight | $32.00 | $30.00 |
| Ross Fowler | B of A Securities | Announces | Neutral | $29.00 | - |
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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of CenterPoint Energy's market standing. Stay informed and make data-driven 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.
Unraveling the Financial Story of CenterPoint Energy
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Challenges: CenterPoint Energy's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -0.22%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.
Net Margin: CenterPoint Energy's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 10.4%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.85%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.46%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.89, CenterPoint Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.
What Are Analyst Ratings?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
