Friday - Analysts at Mizuho have increased their price target on Entergy Corp (NYSE:ETR) shares to $114 from the previous target of $107, while maintaining a Buy rating on the stock. The revision comes as Entergy prepares for its upcoming Analyst Day scheduled for June 6-7.
Mizuho's positive stance is based on several key expectations for Entergy in the coming year. The firm anticipates that Entergy will settle its SERI litigation, with the remaining exposure at about 16%.
Additionally, it is expected that the company will continue to follow through on its regulatory strategy and enhance its credit metrics.
During the Analyst Day, Entergy is projected to provide updates on its capital expenditure (capex) plan and extend the outlook to 2028, previously set until 2026. Entergy's shares are currently trading at roughly a 10% price-to-earnings (P/E) discount compared to its peers.
Mizuho believes that the stock could experience a re-rating to match the P/E multiples of its group if the company successfully executes its near-term regulatory plans.
The updated price target reflects Mizuho's revised multiples for Entergy. The firm's endorsement of the stock ahead of the company's detailed presentations next week signals confidence in Entergy's strategic direction and financial health.
InvestingPro Insights
As Entergy Corp (NYSE:ETR) approaches its Analyst Day, real-time data from InvestingPro enriches the outlook for investors. Entergy operates with a debt burden yet has demonstrated consistent shareholder returns, raising its dividend for 9 consecutive years and maintaining payments for 37 years. An InvestingPro Tip highlights that the company is trading at a low P/E ratio relative to near-term earnings growth, currently at 10.77, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at an even more attractive 10.06. This aligns with Mizuho's view that Entergy's stock could undergo a re-rating to match the P/E multiples of its peers.
InvestingPro Data shows a dividend yield of 4.19% as of May 1, 2024, which is appealing for income-focused investors. Additionally, the stock has seen a year-to-date price total return of 8.9%, indicating a positive momentum leading up to the Analyst Day. Investors looking to delve deeper into Entergy's financials and future prospects can find additional InvestingPro Tips at https://www.investing.com/pro/ETR.
To gain full access to these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 9 additional InvestingPro Tips available, investors can equip themselves with comprehensive data and analysis to make informed decisions on Entergy Corp's stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.