Will This Price Target Increase Help Entergy (ETR) Stock Today?

Story updated at 10 a.m.to reflect market activity.

NEW YORK (TheStreet) --Jefferies raised its price target for Entergy (ENTR) to $72 from $70.50 Wednesday.

Entergy gained 1% to $72.67 in morning trading.

The firm reiterated its "hold" rating for the stock. Analysts Paul B. Fremont and Anthony C. Crowdell wrote that the increase is due to higher commodity prices for power, and the effects of EWC on results.

"Our price target of $72.00 (previously $70.50 per share) is based on our P/E valuation for utility stand-alone operations less parent costs. Our valuation ascribes zero value to EWC longer term," the analysts wrote. "Taking our adjusted utility 2016 earnings of $4.50 times a 15.0 P/E multiple, equivalent to our 2016 regulated large cap group average multiple, we arrive at a price target of $67.50. To this we would add $4.50 of estimated value for positive EWC free cash flows and net operating loss carryforwards. Based on yesterday's closing price of $71.97 this represents 12-month price appreciation potential of 0.4% and 12-month total return potential of 5.0% including the company's current dividend yield of 4.6%. Key risks include sensitivity of the non-regulated generation segment to commodity prices, and/or a regulatory requirement to construct cooling towers at Indian Point."

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Separately, TheStreet Ratings team rates ENTERGY CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

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