CenterPoint Energy: No DCF P(above), FV=$11 vs target $32.50 and current price ~$30. DCF FV=$11 is severely below current — either model error or reflects real overvaluation in this regulated utility. Texas utility facing regulatory headwinds and storm recovery costs. Target $32.50 implies no upside at current price. Downgrade to 5 (Lean Avoid): DCF data unreliable but even at face value this looks at best fully valued.
Fair Value Distribution — percentile bands
0.4% of simulations place fair value above current price
WHAT IS PRICED IN
Revenue-Based Reverse DCF
22.0%/yr
±8.8% · revenue growth to justify current price
KEY VALUE DRIVERS
Spearman correlation — what moves this valuation most
Eagle will generate this view by the next trading session (~6h).
Eagle will generate this view by the next trading session (~6h).
CNP executing strategic portfolio optimization: divesting low-margin gas assets (.2B LAMS sold, .6B CEOH sale announced), investing in transmission hardening (.75B SRP) and generation diversification ...