Entergy Buy Rec Reiterated

Entergy Corp. (ETR - Analyst Report) is shifting towards becoming a fundamentally strong electric energy utility with the separation of its nuclear business. Higher nuclear power prices, lower taxes, ongoing share repurchases, improving credit markets, a reasonable valuation, and steady recovery from Hurricanes Gustav and Ike damage will continue to deliver strong earnings and cash flow growth.

However, pending regulatory approvals in New York and Vermont for the proposed spin-off of its nuclear business is likely to relegate the spin-off transaction. Therefore, we reiterate our BUY recommendation on ETR with a six-month target price of $75.00.

Price appreciation to our near-term valuation target, coupled with a quarterly cash dividend of $0.75 per share which appears sustainable and secure represents annualized total return potential of 19.5%.

Read the full analyst report on ETR