CNP - CenterPoint Energy upped at BofA on likely favorable Texas legislation

CenterPoint Energy ([[CNP]] +1.2%) edges higher as Bank of America upgrades to Buy from Neutral with a $27 price target, anticipating positive revisions from incremental spending opportunities, potential tax initiatives and upside from additional strategic actions."We have received clarity on multiple key transformational items, namely the Arkansas and Oklahoma gas LDC sale and Enable Midstream sale to Energy Transfer, as management works toward becoming a pure-play regulated utility with healthy estimated 10% rate base growth driving 6%-8% EPS growth," BofA's Julien Dumoulin-Smith writes.The securitization of extraordinary gas costs bill (HB1520) in Texas moved last week to the state senate floor, and Smith believes the bill will be passed this week and "go a long way toward de-risking recovery of the costs."Smith says he is also tracking multiple bills in Texas that would support additional investment, including SB415 that would allow for CenterPoint to rate base 25 MW of blue sky

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CenterPoint Energy upped at BofA on likely favorable Texas legislation