Company Reports

We are maintaining our $31 fair value estimate for narrow-moat CenterPoint Energy after the company reported first-quarter operating earnings per share of $0.55 compared with $0.50 in the year-ago period.

We are reaffirming our fair value estimates and economic moat ratings for US utilities after executives at the Electric Reliability Council of Texas on Tuesday forecast an extraordinary jump in electricity demand in the state during the next five years.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest over $22 billion over the next five years, supporting our expectation that management can achieve the high end of its 6% to 8% annual earnings growth target through 2030, in line with our estimate in 2024-28.

We are increasing our CenterPoint Energy fair value estimate to $31 per share from $30 after the company reported 2023 operating earnings of $1.50 per share compared with $1.38 in 2022 and announced a deal to sell two subsidiaries.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest over $22 billion over the next five years, supporting our expectation that management can achieve the high end of its 6% to 8% annual earnings growth target through 2030, in line with our estimate in 2024-27.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest almost $2 billion over the next five years, supporting our expectation that management can achieve its 8% annual earnings growth target through 2024.

We are maintaining our $30 fair value estimate and narrow moat rating for CenterPoint Energy after the company reported third-quarter operating earnings of $0.40 per share compared with $0.32 in the same year-ago period.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest more than $21 billion over the next five years, supporting our expectation that management can achieve its 8% annual earnings growth target through 2024.

We are maintaining our $29 per share CenterPoint Energy fair value estimate after the company reported second-quarter operating earnings of $0.28 per share compared with $0.31 in the same year-ago period. Our narrow moat and stable moat trend remain unchanged.

We are maintaining our $29 CenterPoint Energy fair value estimate after the company reported first-quarter operating earnings of $0.50 per share compared with $0.47 in the same year-ago period. Our narrow moat and stable moat trend remain unchanged.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest $21 billion over the next five years, supporting our expectation that management can achieve its 8% annual earnings growth target through 2024.

We are maintaining our $29 CenterPoint Energy fair value estimate after the company reported full-year 2022 operating earnings of $1.38 per share compared with $1.64 in 2021, which included $0.37 of divested midstream earnings. Our narrow moat and stable moat trend remain unchanged.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest more than $20 billion over the next five years, supporting our expectation that management can achieve its 8% annual earnings growth target through 2024.

We are maintaining our $29 fair value estimate for CenterPoint Energy after the company reported third-quarter operating utility earnings per share of $0.32 compared with $0.33 in the year-ago period. Last year's third-quarter earnings included $0.08 per share of divested midstream earnings. Management maintained its 2022 utility EPS guidance at $1.37-$1.39, in line with our estimates.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

Our initial analysis of the U.S. Inflation Reduction Act that President Joe Biden plans to sign on Aug. 16 has led us to reaffirm or make slight increases to our fair value estimates for U.S. utilities. We are reaffirming our moat and moat trend ratings.

We are increasing our CenterPoint Energy fair value estimate to $29 per share from $28 after the company reported second-quarter operating utility earnings per share of $0.31, up from $0.28 in the year-ago period. Management increased its 2022 utility EPS guidance to $1.37-$1.39, a $0.01 increase from its prior guidance range. Management reaffirmed its 8% utility earnings guidance growth through 2024 off the new base, among the industry's highest, and in line with our estimates.

CenterPoint Energy's regulated utilities have significant growth investment opportunities. We expect the company to invest more than $20 billion over the next five years, supporting our expectation that management can achieve its 8% annual earnings growth target through 2024.