.September 17, 2024 Tuesday 3:47:00 PM

Barclays analysts upgraded Entergy (NYSE:ETR) to Overweight from Equalweight, with a new price target of $138, up from $115. The upgrade is based on favorable regulatory developments and improved storm resilience efforts by the company. Recent settlements with regulatory bodies have reduced risks, and Entergy’s projected 6-8% CAGR in earnings growth makes it undervalued compared to peers like Southern Company and Duke Energy.

Entergy’s focus on storm resilience and successful recovery efforts post-Hurricane Francine, along with well-managed rate risks, position the company for further growth. Analysts believe Entergy’s current 5% discount to large-cap electric utility peers could shift to a premium as the company strengthens its balance sheet and executes growth strategies leading into 2025.