As previously reported, SunTrust analyst Ali Agha downgraded CenterPoint Energy to Hold from Buy with a price target of $27, down from $32. The analyst says that the outcome in the Houston, Texas Electric rate case court proceedings yesterday was worse than expected, and the stock could come under added pressure from the potential for a "large equity raise". Agha adds that there is some opportunity to petition for a rehearing, but the decision to reduce the authorized Equity Ratio to 40% from 45% and adopt a "ring fencing mechanism" will likely become final.

Scotiabank analyst Andrew Weisel lowered the firm's price target on CenterPoint Energy to $29 from $31 and keeps a Sector Perform rating on the shares. Interest rates remain stubbornly high, which has weighed on the sector's valuation, the analyst tells investors. The firm views both Canadian and North American utility stocks as undervalued but sees upside for Canadian utility stocks following their steady underperformance compared to its U.S. peers. Fundamentally, Scotiabank remains bullish on the group's long-term earnings outlook given the tailwinds driving its strong rate base growth.