Citigroup: Court Ruling 'Big Win' For Entergy Corp

On Friday, the New York State Supreme Court (Appellate Division) stated that

Indian Point is exempt from New York State Coastal Management Program certification requirements. In a note to clients on Monday, Shahriar Pourezza of Citigroup upgraded shares of Entergy to Neutral from Sell with a price target raised to $85 from a previous $72. Pourezza states that his prior Sell rating has been a “challenging call” but justified on the premise that the company's Indian Point plant was facing a near-term shut down. “From the standpoint of our thesis, Indian Point shutdown was a binary event – and in light of the last week's decision we believe that risks of imminent shutdown have abated,” Pourezza wrote. The analyst does add that Indian Point continues to face other challenges including a Water Quality Certification renewal process. Pourezza does note that the challenges facing the company are not imminent and that following the court's decision, Indian Point will operate in the foreseeable future with “strong economics.”