CenterPoint Energy (CNP) Stock Forecast & Price Target

CenterPoint Energy's year-to-date weather-adjusted commercial and industrial (C&I) sales have increased by 8% year-over-year, indicating robust demand for its services. The company has achieved a funds from operations (FFO) to debt ratio of 14.1% on a trailing twelve months (TTM) basis, slightly improved from 13.9% in the previous quarter and within the target range of 14%-15%. Additionally, the significant growth in the un-handicapped total queue to approximately 74 gigawatts (GW) by 2031, reflecting a 3.5 times increase, underscores strong potential for future expansion and operational growth.

CenterPoint Energy faces several significant risks that may negatively impact its financial performance, including slowing load growth in its primary market of Houston, impending equity needs, and heightened political and headline risks in Texas. The company's planned sale of its Ohio gas utility, although potentially beneficial, has been downsized to $3.2 billion, potentially limiting future financial flexibility and investment capabilities. Additionally, despite Fitch improving its outlook to stable, the persistent negative ratings from Moody's and S&P raise concerns regarding the company’s creditworthiness and add to the overall negative sentiment surrounding the stock.