Guggenheim Securities LLC downgraded CenterPoint Energy Inc. to "neutral" from "buy" due to valuation and strong stock performance.

"It has become much more challenging to continue to justify a buy rating at current valuation levels without a NT catalyst which included a much cleaner exit out of [Enable Midstream Partners] (ENBL, NC, $14.62) and redeployment of capital into more 'utility like' opportunities," Guggenheim analysts said in a Dec. 4 investor note. CenterPoint Energy terminated its plan to exit its ownership stake in Enable on Dec. 1.

Guggenheim also lowered its price target on CenterPoint Energy to $30 from $32 but kept its full-year EPS estimates of $1.33 for 2017, $1.43 for 2018 and $1.51 for 2019.

CenterPoint Energy shares closed down 1.60% to $29.53 on Dec. 1.