Mizuho raises Entergy stock price target to $97 on capex growth

Published 31/07/2025, 14:40
Mizuho raises Entergy stock price target to $97 on capex growth

Investing.com - Mizuho (NYSE:MFG) raised its price target on Entergy Corp (NYSE:ETR) to $97.00 from $95.00 on Thursday, while maintaining an Outperform rating on the utility company’s stock. The $38.66 billion market cap utility provider has demonstrated strong momentum, with shares up 19.49% year-to-date and trading near their 52-week high. According to InvestingPro analysis, the company maintains a "GOOD" financial health score.

The price target increase follows Entergy’s second-quarter earnings report, which showed earnings of $1.05 per share, exceeding consensus expectations of $0.91 per share.

Entergy announced it has secured a new customer for its Arkansas operations that will drive an increase in capital expenditures and load growth for the state, prompting the company to raise its 2025-28 cumulative capital plan by $3 billion to $40 billion.

The utility company also raised its adjusted earnings per share guidance for 2027 by $0.05 to $4.70-$5.00 and for 2028 by $0.10 to $5.20-$5.50, while increasing its 2025-28 industrial sales compound annual growth rate to approximately 13% from the previous 12%-13%.

Despite the increase in capital expenditures, Entergy did not increase its equity capital needs, citing higher operating cash flows.

In other recent news, Entergy Corporation reported its second-quarter earnings for 2025, delivering a notable performance in terms of earnings per share (EPS). The company achieved an adjusted EPS of $1.05, exceeding the forecasted $0.97 and marking an 8.09% surprise. Despite this positive earnings result, Entergy’s revenue fell short of expectations, totaling $3.02 billion compared to the anticipated $3.24 billion, a 6.79% miss. In response to the earnings report, BMO Capital adjusted its price target for Entergy’s stock, raising it to $96 from $95, while maintaining an Outperform rating. This adjustment came after Entergy’s EPS exceeded both BMO’s estimate of $0.92 and the consensus estimate of $0.91. These developments reflect the company’s ability to surpass earnings expectations, although revenue challenges remain.

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