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Investing.com - Wolfe Research raised its price target on CenterPoint Energy (NYSE:CNP) to $45.00 from $43.00 on Friday, while maintaining an Outperform rating on the utility company’s stock. The stock, currently trading near its 52-week high of $40.50, has delivered an impressive 27.23% return year-to-date.
The research firm cited CenterPoint’s projected rate base growth of approximately 11%+ through 2030, placing it among the highest in the utility sector. This growth is supported by solid customer expansion in key service territories, with Houston Electric expecting approximately 2% annual customer growth and gas LDCs experiencing about 1% annual growth. According to InvestingPro, the company has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability.
Wolfe Research noted CenterPoint has made considerable progress since Hurricane Beryl, including accelerating resiliency initiatives, settling a revised System Resiliency Plan, proposing a constructive mobile generation solution, and receiving approval for an uncontested settlement in CEHE’s rate case.
The firm highlighted CenterPoint’s more than $10 billion in incremental capital expenditure opportunities, including additional electric transmission at CEHE & IN Electric, further resiliency and grid modernization, strategic undergrounding of distribution lines, and data center-related investments at IN Electric.
Based on these factors, Wolfe Research believes CenterPoint deserves to trade at approximately 20-25% premium to their targeted group average of about 17.5-18.0x in 2027. The stock currently trades at a P/E ratio of 26.91x, with five analysts recently revising their earnings estimates upward for the upcoming period.
In other recent news, CenterPoint Energy reported its third-quarter 2025 earnings, showcasing a significant earnings per share (EPS) of $0.50. This figure surpassed analyst expectations of $0.44 and represented a 60% increase compared to the same period last year. However, the company’s revenue fell short of projections, coming in at $1.99 billion against an anticipated $2.05 billion. Despite the revenue shortfall, the strong earnings performance has been a focal point for investors. The positive EPS results have contributed to investor optimism about the company’s future growth. Analysts had projected these earnings figures, highlighting the importance of meeting or exceeding such expectations. The recent developments reflect the company’s financial trajectory and investor sentiment.
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