Story updated at 9:50 a.m. to reflect market activity.
Shares of Entergy fell -0.4% to $81.77.
The firm reiterated its "hold" rating for the company. The higher price target reflects stronger expected utility contributions according to Jefferies analysts.
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Separately, TheStreet Ratings team rates ENTERGY CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENTERGY CORP (ETR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 23.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 35.35% is the gross profit margin for ENTERGY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.65% is above that of the industry average.
- Net operating cash flow has increased to $767.16 million or 41.02% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.24%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 143.2% when compared to the same quarter one year prior, rising from $166.98 million to $406.05 million.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: ETR Ratings Report