Barclays upgrades Entergy Corp to overweight and raises price target on storm resilience By Investing.com

Barclays has bought shares in Entergy Corp (NYSE: ETR) from Equal Weight to Overweight and raised the price target to $138 from $115. This revision follows a number of positive regulatory developments and the company’s demonstration of resilience to storm risks.
Entergy Corp made several regulatory advances this summer, including the E-LA/SERI settlement, which contributed to the company’s improved outlook. Barclays highlighted Entergy’s long-term annual earnings per share growth rate (EPS CAGR) of 6-8%, which it views as substantial and achievable. This growth forecast positions Entergy favorably relative to its vertically integrated peers in multiple states.
The company’s stock has been impacted by storm-related risks in the past. However, Entergy’s management has shown significant progress in storm preparation and response, particularly during Hurricane Francine this past weekend. These efforts have demonstrated the effectiveness of the company’s recent investments in resilience.
Barclays also highlighted Entergy’s strong EPS growth potential, supported by above-average industrial growth. In addition, the company’s tariff risk is mitigated as four of six operating companies have formula rate plans (FRPs). The company’s financial health is also expected to improve, with a forecast funds from operations (FFO) to debt ratio of 15%.
Entergy currently trades at a discount of about 5% to the group of large electric utilities. Barclays sees the potential for Entergy to reach or slightly exceed the average industry valuation by 2025.
Entergy Corporation (NYSE:) reported a strong second quarter earnings report with operating earnings per share (EPS) of $1.92, beating both the BMO Capital Estimate and the Consensus Estimate. BMO Capital subsequently raised its price target on the company to $131 and maintained an Outperform rating at.
Evercore ISI also raised its price target on Entergy to $120, citing potential growth from data centers and large projects in the Gulf region. The company affirmed robust net cash of $5.9 billion and its adjusted EPS guidance for 2024, indicating positive financial performance.
InvestingPro Insights
Following the upgrade from Barclays, Entergy Corp (NYSE:ETR) is showing a mix of promising signs and potential challenges, according to InvestingPro. The company operates with a significant debt load, which is an important aspect for investors to consider. However, Entergy has increased its dividend for nine consecutive years, which is a clear sign of its commitment to creating value for shareholders. This is further reinforced by the fact that the company has made dividend payments for 37 consecutive years, which underscores its long-term reliability in rewarding investors.
InvestingPro data shows a market capitalization of $27.47 billion and a price-to-earnings (P/E) ratio of 15.37. This valuation could appeal to investors looking for reasonable pricing relative to earnings. The company’s revenue growth in the last quarter was 3.78%, signaling a short-term positive trend. Additionally, Entergy’s dividend yield is 3.56%, which is competitive with the industry and could be attractive to income-seeking investors.
For investors seeking deeper insights, more InvestingPro tips for Entergy Corp are available at These tips provide a detailed analysis of the company’s financial health and market performance, providing a comprehensive evaluation for potential investors.

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