Mizuho has adjusted its target price for CenterPoint Energy (CNP) upward to $44 from $42 but kept a Neutral rating on the stock. The move follows CenterPoint's release of fourth-quarter and full-year 2025 results and an update to its long-range plans and financing position.
The company reported adjusted earnings per share of $3.76 for 2025 and fourth-quarter earnings per share of $0.45, both described by management as consistent with consensus expectations. CenterPoint also reaffirmed its 2026 adjusted EPS guidance in the range of $1.89 to $1.91 and reiterated an assumed annual adjusted EPS growth rate of 7% to 9% through 2035.
On the equity side, CenterPoint has delivered a total return that sent the stock up 28.3% over the past year. Shares were trading at roughly $43 at the time of the most recent update, marginally below the 52-week high of $43.20. Third-party Fair Value analysis cited in company research suggests the shares may be trading above fair value. The company pays a 2.14% dividend yield and has sustained dividend payouts for 56 consecutive years.
Operationally, the utility revised upward its peak-demand expectations in the Houston Electric service territory. Peak demand is now projected to rise by 50% by 2029, a timeline accelerated by two years relative to previous forecasts. In response to rising load expectations, CenterPoint increased its 10-year capital program by $500 million, bringing the total to $65.5 billion. The expanded plan reflects, among other elements, the addition of a third 765 kV transmission line.
Balance sheet dynamics improved after the U.S. Treasury issued guidance on the Corporate Alternative Minimum Tax. Management estimated that the guidance will enhance the companys funds from operations to debt metric by approximately 60 to 70 basis points. Mizuho characterized the CAMT benefit as unexpected and described the companys investor call as constructive, noting that balance sheet condition has been a principal investor concern.
On the financing front, CenterPoint revealed plans to sell $550 million of convertible senior notes due in 2029 via a private placement to qualified institutional buyers. The offering structure includes an option for initial purchasers to acquire an additional $50 million of the notes within 13 days of issuance.
The company also announced forthcoming changes in its accounting leadership. Kristie L. Colvin, Senior Vice President and Chief Accounting Officer, will step down from her current role on March 2, 2026 and serve in an advisory capacity until her retirement effective June 1, 2026. Russell K. Wright will assume the position of Vice President and Chief Accounting Officer on March 2, 2026. Wright is a certified public accountant who has held multiple financial leadership roles within CenterPoint Energy.
The situation combines in-line operational results, a heightened capital program tied to faster-than-expected load growth in a key service area, a debt-metrics tailwind from tax guidance, and new near-term financing plans. Investors will continue to weigh these factors alongside valuation signals and dividend consistency.