Entergy downgraded to Sell from Neutral at UBS UBS downgraded Entergy to reflect increasing regulatory risks ahead of rate case filings in Louisiana and Arkansas, declining nuclear cash flows, and valuation. Price target lowered to $55 from $63.
On The Fly: Analyst Downgrade Summary Today's noteworthy downgrades include: ARC Group (ARCW) downgraded to In-Line from Outperform at Imperial Capital... DigitalGlobe (DGI) downgraded to Neutral from Overweight at JPMorgan... Entergy (ETR) downgraded to Sell from Neutral at UBS... Sabra Health Care (SBRA) downgraded to Sector Perform from Outperform at RBC Capital.
Entergy downgraded to Sell from Neutral at UBS UBS analyst Julien Dumoulin-Smith downgraded Entergy to Sell saying the company's nuclear business is likely to shrink into year-end with potential early retirements of Fitzpatrick and Pilgrim. Dumoulin-Smith is "increasingly concerned" about Entergy's unregulated plant value and cut his price target for shares to $59 from $73. He sees downside risk to consensus estimates for the company.
On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: Antero Midstream (AM) upgraded to Outperform from Neutral at Credit Suisse... China Southern Airlines (ZNH) upgraded to Neutral from Underperform at Macquarie... DuPont (DD) upgraded to Buy from Neutral at Citi... Entergy (ETR) upgraded to Overweight from Equal Weight at Barclays... HSBC (HSBC) upgraded to Conviction Buy from Buy at Goldman... KLA-Tencor (KLAC) upgraded to Buy from Neutral at Nomura... Total (TOT) upgraded to Buy from Hold at Societe Generale.
Entergy upgraded to Overweight from Equal Weight at Barclays Barclays upgraded Entergy to Overweight with a $71 price target. Analyst Daniel Ford said Entergy is transitioning focus to the regulated business, which should allow the shares to trade at an industry multiple, combined with improved regulatory constructs, and a potential near-term dividend hike, creates a total return potential of approximately 15%.