Scotiabank Boosts Duke Energy & Entergy to 'Sector Outperform'
Scotiabank has upgraded Duke Energy and Entergy to 'Sector Outperform', boosting stocks following the news. The analyst firm sees both companies well-positioned in the data center and energy sectors, with Entergy's innovative deal with Meta in Louisiana receiving federal approval.
Scotiabank analyst Andrew Weisel highlighted Entergy's strong position to capture more data center wins, converting incremental capex into earnings upside. Duke Energy, too, has seen success with data centers and manufacturers, including Amazon's $10 billion investment in North Carolina. The analyst firm set new price targets for Duke Energy at $137 and Entergy at $105, reflecting their optimism.
Entergy's innovative arrangement with Meta in Louisiana has been supported and approved by the Federal Energy Regulatory Commission (FERC). This deal allows Meta to sell energy and capacity, contributing to Entergy's growth while protecting customers. The company's excess capacity position, low rates, and supportive regulatory environment further enhance its growth potential. Duke Energy, meanwhile, expects load growth to accelerate, from 1.5%-2% in 2025-26 to 3%-4% in 2027-29, led by 4%-5% in the Carolinas in the outer years.
Scotiabank's upgrade reflects the strong potential of Duke Energy and Entergy in their respective sectors. Entergy's innovative deal with Meta, approved by the FERC, and both companies' positive estimate revisions and near-term catalysts contribute to their attractive outlooks.
Read also:
- Unveiling the Less-Discussed Disadvantages of Buds - Revealing the Silent Story
- Grid Risk Evaluation Strategy By NERC Outlined, Focusing on Potential Threats from Data Centers
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Vantor & Lanteris Fuel US Intelligence with Innovative Tech
