Entergy (ETR) Stock Forecast & Price Target

Entergy has demonstrated a robust growth outlook, with management now guiding for a rate of return exceeding 8% through 2028, an increase from the previous guidance of 6% to 8%. This positive trajectory is supported by a notable rise in industrial sales CAGR, which has been adjusted to 13% due to customer growth in Arkansas, along with a $3 billion increase in the 2025-2028 capital expenditure plan entirely focused on enhancing generation capacity. Furthermore, the company's commitment to accelerating capital expenditures indicates a strong forecasted rate base growth, positioning it favorably within the energy sector.

Entergy's stock has consistently traded at a relative discount, averaging approximately -10% prior to late 2024, indicating longstanding investor caution. The company operates within a regulatory environment perceived as more challenging compared to its peers, which may hinder its operational flexibility and growth potential. Additionally, Entergy's customer base, primarily comprising economically-sensitive industrial customers and lower-income residential users, exposes it to heightened vulnerability in a volatile macroeconomic climate.