Jefferies Tweaks Numbers on CenterPoint (CNP) Following Sum-of-Parts Analysis, Raises Target to $21

Following further evaluation, Jefferies said it was trimming estimates on CenterPoint Energy (NYSE: CNP). Jefferies raised its price target from $20.50 to $21.00, maintaining a Hold rating on the stock.

Jefferies is keeping fiscal 2011 and 2012 earnings estimates -- currently at $1.15 and $1.22, respectively -- while lowering its 2013 EPS estimate from $1.37 to $1.34 and 2014 estimate from $1.48 to $1.44.

Further, in 2011, third-quarter earnings move from 29 to 28 cents per share, and fourth-quarter from 28 cents to 27 cents per share.

On the '13 and '14 revisions, Jefferies comments, "The revisions reflect our expectation for lower earnings from the equity component of interest associated with the upcoming issuance securitization bonds (expected in late 2011 or early 2012). To a lesser extent, the earnings revisions also reflect lower forward natural gas prices, which reduce revenues associated with retained natural gas."

The firm also commented that it finds "CenterPoint Energy...to be fairly valued based on sum-of-the-parts valuation."

CenterPoint is expected to report third-quarter results ahead of the bell Wednesday, November 2, 2011.

For more ratings news on CenterPoint Energy click here and for the rating history of CenterPoint Energy click here.

Shares of CenterPoint Energy closed at $20.84 yesterday.

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