Deutsche Bank Trims Price Target On Entergy (ETR), Reiterates 'Hold'
Thursday, February 02, 2022 9:55 AM



Deutsche Bank (DB) trimmed its price target on Entergy Corp. (NYSE:ETR) to $69 from $72, while reiterating "Hold" rating on the stock.

The bank views the energy company's proposed transaction with ITC Holdings Corp. (ITC) favorably and believe it could add as much as $10-$12 per share of value to ETR shareholders should it close.

That said, DB wrote that securing regulatory approval for the deal may be challenging and that the bank is maintaining its valuation on a standalone basis.

DB said it also sees potential downside risk to the standalone outlook should commodity prices not recover.

In December, Entergy announced that it would spin off its electric transmission unit and sell the business to ITC.

The stock, which has been trading in the 52-week range between $57.60 and $74.26, closed at $69.39 on Wednesday.


 

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