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Is CenterPoint Energy an Apt Pick for 2017?

PART:
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Part 5
Is CenterPoint Energy an Apt Pick for 2017? PART 5 OF 5

A Look at CenterPoint Energy’s Price Targets and Outlook

Price targets

According to analysts’ estimates, CenterPoint Energy (CNP) has a price target of $24.50, which implies a downside of more than 1% during the next year. It is currently trading at $24.76.

Of the 17 analysts tracking CenterPoint Energy on December 28, 2016, two recommend it as a “strong buy” and two recommend it as a “buy.” Twelve analysts recommend CNP as a “hold’ and “sell” is recommended by one analyst as of .

A Look at CenterPoint Energy’s Price Targets and Outlook

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Peer CMS Energy (CMS) has a one-year median price target of $44.42, implying an estimated upside of 6.5% in the next year, compared to its current market price of $41.69.

DTE Energy (DTE) has a one-year median price target of $100.13, implying an upside of just 1.5% in the next year, compared to its current market price of $98.65.

CenterPoint Energy: Outlook

CenterPoint Energy’s management has maintained its earnings growth target of 4.0%–6.0% through 2018. For 2016, it has given guidance of $1.16–$1.20 per share. Its equity investment in Enable Midstream Partners is expected to contribute to earnings at the high end of its range of $0.24–$0.28 per share in 2016.

CenterPoint has a 55.4% stake in Enable Midstream Partners (ENBL). It’s reviewing this stake for a sale, spin-off, or even continued ownership. Enable Midstream’s earnings are under pressure due to the massive fall in energy commodity prices since mid-2014.

These midstream operations have been influencing the overall earnings of CNP from the last several quarters. The volatile earnings resulted in even more volatile stock movements.

To learn more, pleaseread Powering On: All You Need To Know About Utilities.

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