In the latest quarter, 6 analysts provided ratings for CenterPoint Energy (NYSE:CNP), showcasing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 4 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $30.83, with a high estimate of $33.00 and a low estimate of $29.00. This current average reflects an increase of 0.52% from the previous average price target of $30.67.
Exploring Analyst Ratings: An In-Depth Overview
A comprehensive examination of how financial experts perceive CenterPoint Energy is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Stephen Byrd | Morgan Stanley | Lowers | Equal-Weight | $29.00 | $30.00 |
| James Thalacker | BMO Capital | Raises | Outperform | $33.00 | $32.00 |
| Stephen Byrd | Morgan Stanley | Lowers | Overweight | $30.00 | $31.00 |
| Stephen Byrd | Morgan Stanley | Raises | Overweight | $31.00 | $29.00 |
| Sophie Karp | Keybanc | Raises | Overweight | $33.00 | $31.00 |
| Andrew Weisel | Scotiabank | Lowers | Sector Perform | $29.00 | $31.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CenterPoint Energy. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CenterPoint Energy compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of CenterPoint Energy's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CenterPoint Energy's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on CenterPoint Energy analyst ratings.
About CenterPoint Energy
CenterPoint Energy owns a portfolio of businesses. Its regulated electric utilities provide transmission and distribution services to more than 2.5 million customers in the Houston area, southern Indiana, and west central Ohio. The company has natural gas distribution systems serving approximately 4 million customers.
CenterPoint Energy's Economic Impact: An Analysis
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, CenterPoint Energy faced challenges, resulting in a decline of approximately -5.72% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: CenterPoint Energy's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 13.36%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): CenterPoint Energy's ROE stands out, surpassing industry averages. With an impressive ROE of 3.56%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): CenterPoint Energy's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.88%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: CenterPoint Energy's debt-to-equity ratio is below the industry average at 1.92, reflecting a lower dependency on debt financing and a more conservative financial approach.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.