Nicholas Amicucci, an analyst from Evercore ISI, has initiated a new Hold rating on Entergy (ETR).
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Nicholas Amicucci has given his Hold rating due to a combination of factors influencing Entergy’s current market position. The company’s anticipated power-demand growth from industrial customers is a significant factor driving its capital-investment strategy for the coming years, with expectations of a substantial growth rate. However, the market seems to have already accounted for this growth potential, and attention is now on Entergy’s capacity to finance this expansion.
Moreover, while Entergy operates in a favorable jurisdiction with promising growth prospects, much of this potential has already been factored into the stock’s current price. The shares are trading at a high level relative to historical valuations, suggesting that the market expects near-perfect execution of growth plans. This situation creates a balanced risk/reward profile, leading to the Hold rating, as the potential upside is limited to around 3% based on the current price target of $98.
In another report released on September 25, Morgan Stanley also maintained a Hold rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 148 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ETR in relation to earlier this year.