UPDATE: Credit Suisse Raises PT on CenterPoint Energy Following 1Q13 EPS
In a report published Friday, Credit Suisse analyst John Edwards reiterated an Underperform rating on CenterPoint Energy (NYSE: CNP), and raised the price target from $22.00 to $24.00.
In the report, Edwards noted, “CenterPoint Energy (CNP) reported 1Q13 EPS of $0.34/share vs. our $0.35/share and consensus of $0.36, but cut guidance by $0.05/share for the year to $1.17-$1.25 on the formation of the MLP which is dilutive to earnings through 2014 (per mgt's estimate) and 2015 (per our estimate). We shaved 2013E EPS by $0.01, to $1.21/share and held our forecasts for 2014 and 2015. We cut our rating on CNP to Underperform when they announced the formation of MLP JV with OGE/Arclight back in March CNP: Dilutive MLP Terms Equals Downgrade to Underperform due to the dilutive terms of the transaction and as validated by the guidance cut. The large issue is valuation.”
CenterPoint Energy closed on Thursday at $24.14.
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