Jefferies Maintains a 'Buy' on Entergy Corp (ETR); Unlocking Value in the Transmission Business

Jefferies maintains a 'Buy' on Entergy Corp (NYSE: ETR) price target raised from $77 to $82.

Jefferies analyst says, "Yesterday Entergy announced a definitive agreement to divest and merge its electric transmission business into ITC Holdings, an independent transmission company. We estimate the transaction could be substantially value accretive to Entergy shareholders...We estimate the transaction could add as much as $8/sh of value."

"Our valuation reflects forward commodity prices and hedges, a haircut
for risk associated with a possible regulatory requirement to add cooling towers at Indian Point and NPV of federal NOLs. Our valuation assumes Vermont Yankee continues operating after March 2012; we estimate that a potential early shutdown could have a $2.50-3.00/sh negative impact on valuation."

For an analyst ratings summary and ratings history on Entergy Corp click here. For more ratings news on Entergy Corp click here.

Shares of Entergy Corp closed at $72.39 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Entergy Corp (ETR) PT Lowered to $122 at Truist Securities
• Freedom Broker Downgrades Holley (HLLY) to Hold
• Cantor Fitzgerald Reiterates Overweight Rating on Enovix Corporation (ENVX)