Wells Fargo analyst Neil Kalton reiterated a Buy rating on Entergy (ETR – Research Report) yesterday and set a price target of $97.00.
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Neil Kalton has given his Buy rating due to a combination of factors that highlight Entergy’s promising growth prospects. The company’s service territories are attracting significant interest from large load customers, particularly data centers, thanks to favorable legislation in Arkansas. This interest is expected to drive substantial rate base and earnings per share growth well into the 2030s, with potential expansions from major players like META and AMZN further bolstering this outlook.
Additionally, Entergy is not solely reliant on data centers, as there is also strong demand from industrial customers, including recent commitments from Hyundai, CF Industries, and Woodside. Furthermore, the company’s capital expenditure plans are robust, with a pipeline that could support impressive growth rates. Entergy’s management is also exploring opportunities in nuclear energy, which could play a significant role in meeting future electricity demand, adding another layer to the company’s growth strategy.
According to TipRanks, Kalton is a 5-star analyst with an average return of 9.2% and a 63.48% success rate. Kalton covers the Utilities sector, focusing on stocks such as CMS Energy, Entergy, and FirstEnergy.