Update shared on05 Sep 2025
Fair value Increased 1.08%Analysts have raised Entergy’s price target to $93.13, citing its strong exposure to Gulf Coast industrial growth, rising AI-driven power demand, and robust long-term earnings growth, with the recent share pullback seen as a favorable entry point.
Analyst Commentary
- Bullish analysts cite Entergy's strong positioning to benefit from ongoing industrial growth on the Gulf Coast, as well as rising AI-related power demand.
- The company’s long-term EPS CAGR of over 8% is highlighted as industry-leading and supporting an attractive growth trajectory.
- Recent pullback in shares is attributed to profit-taking and portfolio exposure reductions rather than fundamental weakness, presenting a favorable entry point for long-term investors.
- Guidance for both large-scale renewables and residential solar remains broadly positive, supporting further upside.
- Long-term advantages in nuclear generation are seen as underappreciated in the current market, offering potential for upside as market narratives evolve.
What's in the News
- Entergy has been approved to build gas plants to support a Meta data center, indicating collaboration with major tech firms and potential growth in utility demand (Bloomberg, 2025-08-20).
- The company reported no share repurchases in the second quarter of 2025, maintaining its buyback program unchanged during this period (Key Developments, 2025-08-01).
- Entergy has completed the repurchase of 6,306,474 shares, amounting to 1.76% of its outstanding shares, totaling $463.31 million under the buyback program announced in 2010 (Key Developments, 2025-08-01).
- The approval for new gas plants demonstrates Entergy’s ongoing capital investment and strategic focus on supporting large-scale corporate clients (Bloomberg, 2025-08-20).
- The absence of recent buybacks suggests the company is potentially allocating capital to investment projects, such as the Meta data center partnership rather than shareholder returns (Key Developments and Bloomberg, 2025-08-01 & 2025-08-20).
Valuation Changes
Summary of Valuation Changes for Entergy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $92.14 to $93.13.
- The Future P/E for Entergy remained effectively unchanged, moving only marginally from 22.85x to 23.09x.
- The Consensus Revenue Growth forecasts for Entergy remained effectively unchanged, at 8.0% per annum.
Disclaimer
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