Goldman Sachs analyst Insoo Kim downgraded CenterPoint Energy to Buy from Conviction Buy, stating that he no longer expects the stock's multiple to expand in the near-term following the adverse oral decision issued by the Public Utilities Commission of Texas on November 14. CenterPoint may need to issue up to $1B of equity given the rate case outcome and pending outcome of CEHE recapitalization talks estimates Kim. However, the analyst believe the current relative discount to Diversified Utilities more than reflects the negative regulatory impact. Kim lowered his price target on CenterPoint shares to $29 from $33.

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.