ETR: New Large-Load Deals And Dividend Increases Will Support Premium Position

The analyst price target for Entergy has edged higher to approximately $104, up modestly from about $103.60. Analysts point to the companys sector leading earnings growth trajectory and continued momentum from new customer deals and investment opportunities as support for a premium valuation.

Analyst Commentary

Recent research updates reflect a largely constructive stance on Entergy, with most bullish analysts raising their price targets into the high $90s to low $100s range, while one more cautious voice has trimmed expectations.

Bullish Takeaways

• Bullish analysts highlight Entergy's long term earnings per share growth outlook of more than 8 percent, noting that this pace leads the regulated utility sector and supports a premium valuation.
• Several reports point to the recent Google data center agreement in Arkansas as evidence of Entergy's ability to secure large scale, higher value customer deals that reinforce the growth narrative.
• Upward price target revisions into the $100 to $106 range are being justified by higher out year earnings estimates and an expanding rate base from ongoing investment opportunities.
• Analysts also see constructive regulatory and customer engagement, citing continued discussions with potential large load customers as a pipeline for future projects and incremental upside to current forecasts.

Bearish Takeaways

• Bearish analysts maintain a more neutral stance, trimming price targets in the mid $80s and signaling limited near term upside from current levels.
• The more cautious view reflects concerns that, despite strong growth messaging, the shares may already discount a meaningful portion of the long term earnings trajectory.
• There is also some hesitancy around execution risk tied to the pace of load growth, timing of new investment approvals, and financing needs required to support the expanding capital plan.
• Overall, the minority cautious camp prefers to wait for clearer evidence from upcoming quarterly results and financial updates before assigning a higher valuation multiple.

What's in the News

• Entergy Texas entered into agreements to construct and lease the 754 megawatt Legend Power Station combined cycle gas plant in Jefferson County, Texas, including a participation agreement, construction agency agreement, and lease and security agreement that outline financing and operational responsibilities (company filing).
• Entergy's board of directors approved a quarterly dividend of $0.64 per share, a $0.04 increase, payable December 1, 2025 to shareholders of record on November 13, 2025, extending the company’s uninterrupted dividend payment track record since 1988 (company announcement).
• The company reported that from July 1, 2025 to September 30, 2025, it repurchased no additional shares, while confirming completion of 6,306,474 shares repurchased for $463.31 million, or about 1.76 percent of shares, under the buyback program initiated in 2010 (company disclosure).

Valuation Changes

• Fair Value was modestly reduced from about $104.06 to roughly $103.61 per share, implying a slightly lower intrinsic value estimate.
• The Discount Rate remained essentially unchanged at approximately 6.96 percent, indicating a stable cost of capital and risk assessment.
• Revenue Growth was nudged higher from roughly 7.57 percent to about 7.71 percent, reflecting a marginally stronger top line outlook.
• Net Profit Margin edged down from around 15.95 percent to about 15.89 percent, signaling a very slight compression in projected profitability.
• Future P/E eased modestly from roughly 25.08x to about 24.98x, suggesting a small downward adjustment in the expected valuation multiple.