The firm said it raised its rating on the energy company, which is engaged in electric power production and retail distribution operations, based on the favorable court ruling Entergy received regarding its Buchanan, NY-based Indian Point nuclear plant.
Last week, the NY State Supreme Court found that Indian Point 2-3 is "exempt" from the New York State Coastal Management Program certification requirements and is one step close to a new 20-year license renewal, Citigroup said.
Citigroup said its "sell" rating was based on the uncertainty surrounding the company's most profitable plant, and whether or not it would continue to operate. However, "with this recent order we now believe that the plant will operate into the foreseeable future," Citigroup added.
The firm raised its price target on Entergy to $85 from $72.
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 solid stock price performance, revenue growth, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."