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Analyst Expectations For CenterPoint Energy's Future

Benzinga·07/15/2025 18:00:32
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In the latest quarter, 7 analysts provided ratings for CenterPoint Energy (NYSE:CNP), showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 5 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 2 0 0
3M Ago 0 2 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for CenterPoint Energy, presenting an average target of $38.0, a high estimate of $41.00, and a low estimate of $34.00. This upward trend is evident, with the current average reflecting a 7.25% increase from the previous average price target of $35.43.

price target chart

Decoding Analyst Ratings: A Detailed Look

The standing of CenterPoint Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jeremy Tonet JP Morgan Raises Neutral $40.00 $39.00
David Arcaro Morgan Stanley Lowers Equal-Weight $34.00 $35.00
Jeremy Tonet JP Morgan Raises Neutral $39.00 $38.00
Durgesh Chopra Evercore ISI Group Raises Outperform $41.00 $37.00
Andrew Weisel Scotiabank Raises Sector Outperform $40.00 $35.00
David Arcaro Morgan Stanley Raises Equal-Weight $35.00 $34.00
Nicholas Campanella Barclays Raises Equal-Weight $37.00 $30.00

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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CenterPoint Energy compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for CenterPoint Energy's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

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.

Unveiling the Story Behind 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.

Financial Insights: CenterPoint Energy

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining CenterPoint Energy's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.45% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: CenterPoint Energy's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 10.17%, the company may face hurdles in effective cost management.

Return on Equity (ROE): CenterPoint Energy's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.75%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): CenterPoint Energy's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.67%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.03.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.