BofA Merrill Lynch analyst Julien Dumoulin-Smith downgraded CenterPoint Energy to Neutral from Buy with a $27 price target, stating that the outcome of the Houston Electric rate case "seems likely to be much more punitive than expected." The commission's recommended 40% equity cap and 9.25% ROE will put substantial pressure on EPS estimates and ring-fencing provisions would restrict the company from sending a dividend up to the parent, explained Dumoulin-Smith. Given that the case seems to be headed for an "unconstructive outcome," he now sees the need for up to $1.2B in equity in 2021, up from his prior assumption of $1B, added the analyst, whose downgrade of CenterPoint is at least the fourth around Wall Street this morning.