Analyst Actions: CenterPoint Energy Downgraded, PT Eased at Credit Suisse; Shares Edge Lower
CenterPoint Energy, Inc. ( CNP ) has been downgraded to Underperform from Neutral by analysts at Credit Suisse. The firm also lowered the target price on the stock to $22 from $23."
"CNP jumped 7.2% on Friday after it announced it was forming an MLP with OGE/Arclight. We believe that the terms of the proposed MLP will likely not prove accretive to CNP until 2015," said Credit Suisse, explaining why it made the ratings cut.
The firm added that "we are lowering our EPS estimates for CNP following the MLP formation announcement. Our FY2013 EPS drops by $0.06 to $1.22 while FY2014 falls by $0.06 to $1.31 as CNP is contributing a larger share of the FY2013-14 EBITDA than the 59% equity stake it receives under the terms of the new MLP. We are also lowering our 2015 EPS estimate to $1.45 (from $1.46)."
Shares of CNP are down 0.09% to $23.39 in afternoon trade, amid a 52-week range of $18.79 - $24.01.