Whileacknowledging that utility valuations "overall do not appear attractive,"Goldman Sachs on May 9 cited CenterPointEnergy Inc.'s "solid" dividend yield in upgrading thecompany to "neutral" from "sell" with a $21 price target.
DuringCenterPoint Energy's Feb. 26 earningscall, CFO and executive vice president William Rogers noted thatthe company's utilities are strong and are increasing their cash distributions.
"Ifyou were suggesting there's going to be a change in the distribution fromEnable Midstream Partners,if that were to happen I don't think it has a meaningful impact on us in thenear term given the relative amount of that cash flow and the strength of ourbalance sheet," Rogers said in response to a Goldman Sachs analyst.
CenterPoint Energy owns a 55.40% stake in Enable, and iscurrently evaluating strategicalternatives for the investment.
For EPS, Goldman Sachs revised its full-year estimates onCenterPoint Energy to $1.14 from $1.09 for 2016, to $1.27 from $1.18 for 2017,and $1.36 from $1.27 for 2018.