Update shared on 01 Dec 2025
Fair value Increased 1.56%Entergy's analyst price target has increased by nearly $2 to $104. Analysts cite stronger earnings growth, ongoing deal activity, and constructive outlooks for load growth and investment opportunities as reasons for the increase.
Analyst Commentary
Bullish Takeaways- Bullish analysts have raised price targets multiple times in recent weeks. Targets are now generally in the $98 to $106 range, reflecting improving sentiment around Entergy's growth prospects.
- Analysts see Entergy's long-term earnings growth, with an EPS CAGR of over 8 percent, as industry-leading. This underpins the company's premium valuation and favorable outlook.
- The company's active deal pipeline, highlighted by high-profile agreements such as the recent partnership in Arkansas, is seen as a catalyst for further revenue expansion and investor confidence.
- Upward revisions to future earnings estimates, along with constructive plans for new investment opportunities and load growth, are expected to strengthen Entergy's financial positioning over the medium term.
- Bearish analysts point to recent downward adjustments in price targets by some firms. These target figures are now closer to the mid-$80s, reflecting sector-wide valuation recalibrations for regulated utilities.
- Concerns remain regarding the company's ability to consistently execute on its ambitious investment and growth plans, particularly in light of rising financing needs and broader market volatility.
- Skepticism persists about Entergy's capacity to sustain its above-average earnings growth as it navigates industry and macroeconomic challenges.
What's in the News
- Entergy completed the repurchase of 6,306,474 shares, representing 1.76 percent of outstanding shares, for a total of $463.31 million under the buyback program initiated in 2010. (Key Developments)
- The company reported zero shares repurchased between July 1, 2025 and September 30, 2025. This indicates the conclusion of the previously announced share buyback tranche. (Key Developments)
- Entergy's board approved an increase to its quarterly dividend and raised it to $0.64 per share, payable December 1, 2025. This continues an ongoing record of uninterrupted dividend payments since 1988. (Key Developments)
Valuation Changes
- Consensus Analyst Fair Value has risen slightly to $104.06, up from $102.46 in previous assessments.
- Discount Rate has edged down marginally to 6.96 percent from 6.97 percent previously.
- Revenue Growth expectation has increased modestly to 7.57 percent, compared to the earlier projection of 7.55 percent.
- Net Profit Margin has improved to 15.95 percent from 15.90 percent, reflecting a small uptick in profitability forecasts.
- Future P/E ratio is now projected at 25.08x, up from 24.80x, indicating a slightly higher anticipated earnings multiple.
Disclaimer
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