CenterPoint Energy's EPS Forecast Prompts Jefferies To Lift Price Target

Julien Dumoulin-Smith, a Jefferies analyst, reiterated his Buy rating on CenterPoint Energy, Inc. (NYSE:CNP) on May 27 while raising his price target from $42 to $43. The analyst's optimism around CNP is predicated on the expectation of more capital expenditure, which is thought to have the potential to surpass the present upside scenario of $2 billion by an additional $3 billion.

With an anticipated 8.4% compound annual growth rate in earnings per share over the coming five years, until 2029, CenterPoint Energy's future appears promising. The company's strong cash flow, which might gain from either the extension or the resale of mobile generation assets in 2030, as well as the possible sale of additional gas Local Distribution Company (LDC) assets, supports this forecast.

Additionally, Dumoulin-Smith predicts that the company's funds from operations to debt (FFO/D) ratio will improve, rising to 14.4% from the 13.8% predicted for this year—a 60-basis-point increase.

While we acknowledge the potential of CNP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CNP and that has 100x upside potential, check out our report about the cheapest AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.