5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - CenterPoint Energy (NYSE:CNP), currently trading near its 52-week high with a market capitalization of $25.85 billion, received a reiterated Neutral rating and $42.00 price target from Mizuho following its third-quarter earnings report. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period.
The utility company reported adjusted earnings per share of $0.50 for the third quarter, exceeding consensus estimates of $0.44 by approximately 14%. CenterPoint reaffirmed its 2025 EPS guidance of $1.75-$1.77, 2026 guidance of $1.89-$1.91, and a 7-9% EPS compound annual growth rate. The company has maintained its dividend payments for 55 consecutive years, currently offering a 2.22% yield. Get more detailed financial insights and exclusive analysis with a InvestingPro subscription.
The strong quarterly performance was attributed to favorable rate recovery, operations and maintenance savings, and continued growth in the company’s Houston Electric utility segment. CenterPoint’s $65 billion 10-year capital plan supports an 11% rate base compound annual growth rate through 2030, with double-digit growth projected beyond that period. The company’s stock has demonstrated impressive momentum, delivering a year-to-date return of 27.23%.
Following the sale of its Ohio utility, 70% of CenterPoint’s capital plan will be dedicated to Texas operations. The company benefits from interim capital trackers, with TCOS already approved and DCRF expected in December.
CenterPoint’s balance sheet metrics remain a priority, supported by storm securitization from Hurricane Berryl expected by year-end, with a forecasted 100-150 basis points cushion above the downgrade threshold.
In other recent news, CenterPoint Energy reported its third-quarter 2025 earnings, posting an earnings per share (EPS) of $0.50, which surpassed the forecast of $0.44 and represented a 60% increase from the previous year. However, the company experienced a revenue shortfall, with actual revenue at $1.99 billion, falling short of the projected $2.05 billion. Wolfe Research has raised its price target for CenterPoint Energy to $45.00 from $43.00, while maintaining an Outperform rating. The research firm highlighted CenterPoint’s projected rate base growth of over 11% through 2030, supported by customer expansion in key areas. Houston Electric, a part of CenterPoint, anticipates about 2% annual customer growth, with gas LDCs expecting around 1% annual growth. These developments reflect the company’s strong earnings performance and potential for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.