CenterPoint Energy (CNP) Stock Forecast & Price Target

CenterPoint Energy has reported a year-to-date weather-adjusted commercial and industrial (C&I) sales increase of 8% compared to the previous year, indicating strong demand and operational performance. Furthermore, the company has achieved a funds from operations (FFO) to debt ratio of 14.1% on a trailing twelve-month basis through mid-year, which reflects an improvement and remains within its target range of 14%-15%. Additionally, the growth in the un-handicapped total queue, reaching approximately 74 gigawatts by 2031, demonstrates potential for future expansion and increased capacity in its operations.

CenterPoint Energy faces several significant risks that contribute to a negative outlook, including slowing load growth in its primary market of Houston, which could hinder revenue expansion. Additionally, the ongoing planned sale of its Ohio gas utility introduces uncertainty about future earnings, while high interest rates and political risks in Texas create further operational challenges. Although Fitch has stabilized its outlook for one of its credit ratings, Moody’s and S&P maintain negative outlooks, reflecting broader concerns about the company’s financial stability and equity needs amid these pressures.