Evaluating CenterPoint Energy: Insights From 6 Financial Analysts

In the latest quarter, 6 analysts provided ratings for CenterPoint Energy 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.

Analysts have set 12-month price targets for CenterPoint Energy, revealing an average target of $29.17, a high estimate of $32.00, and a low estimate of $27.00. Highlighting a 3.82% decrease, the current average has fallen from the previous average price target of $30.33.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive CenterPoint Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Providing a comprehensive analysis, analysts offer 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 navigate through adjustments in price targets, providing estimates for CenterPoint Energy's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CenterPoint Energy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on CenterPoint Energy analyst ratings.

All You Need to Know 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 in six states serving approximately 4 million customers.

CenterPoint Energy's Financial Performance

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.

Negative Revenue Trend: Examining CenterPoint Energy's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -2.26% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: CenterPoint Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): CenterPoint Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.67% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CenterPoint Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.66% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: CenterPoint Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.91.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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