Mizuho Securities analyst Anthony Crowdell has maintained their neutral stance on CNP stock, giving a Hold rating today.
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Anthony Crowdell has given his Hold rating due to a combination of factors surrounding Centerpoint Energy’s recent activities and market conditions. The sale of its Ohio gas utility, Vectren Energy Delivery of Ohio, was executed at a 1.9x EV/Rate base multiple, which aligns with market expectations. Although the transaction’s tax leakage was less than anticipated, the overall impact on the company’s financials was consistent with prior estimates.
Furthermore, the company’s capital plan, which has been significantly expanded to $65 billion through 2035, indicates a strategic focus on growth and investment. However, the moderation of its dividend growth rate to 6% suggests a cautious approach to financing and cash flow management. These factors, combined with the current market environment and transaction multiples, support the Hold rating as the stock’s potential for significant short-term gains appears limited.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $39.00 price target.