UPDATE: Credit Suisse Downgrades CenterPoint Energy to Underperform on Dilutive MLP Deal

Credit Suisse downgraded CenterPoint Energy (NYSE: CNP) from Neutral to Underperform and lowered the price target from $23.00 to $22.00.Credit Suisse analyst John Edwards commented, "CNP jumped 7.2% on Friday after it announced it was forming an MLP with OGE/Arclight. We believe that the terms of the proposed MLP will likely not prove accretive to CNP until 2015 so we are cutting our rating to Underperform. […] We are cutting our TP, by $1, to $22, implying 17x P/E multiple on our $1.22 NTM EPS plus ~$1.50/share for cash on its balance sheet which translates to approx. 19.2x on our lowered forecast, approx. 95% of the forward P/E of its current peers, ~above its historical relative valuation. Including the dividend, we forecast a total return outlook of approximately (2%) to 0%, supportive of an Underperform rating."CenterPoint Energy closed at $23.41 on Thursday.