Credit Suisse Downgrades CenterPoint Energy (CNP) to Underperform

Credit Suisse downgraded CenterPoint Energy (NYSE: CNP) from Neutral to Underperform with a price target of $25.00 (from $24.00).

Analyst J. Edwards commented, "Despite the beat we are downgrading to Underperform (from Neutral) for a number of reasons: (1) Valuation (2) We expect further delay of CNPs strategic review regarding its ownership stake in ENBL (50% of the GP and 54% of the LP) (3) the potential for mean reversion given CNP's significant outperformance against MLPs over the last year). Our TP actually rises by $1, to $25 based on a generous 20x 2017E EPS and SOTP and together with the dividend equates to ~10% in total return which we expect would significantly lag our coverage, prompting us to downgrade."

For an analyst ratings summary and ratings history on CenterPoint Energy click here. For more ratings news on CenterPoint Energy click here.

Shares of CenterPoint Energy closed at $23.62 yesterday.

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