ETR - Entergy downgraded as BofA sees storm clouds gathering over Louisiana

Entergy ( NYSE: ETR ) -3.6% in Tuesday's trading as Bank of America downgraded shares to Neutral from Buy with a $119 price target, trimmed from $135, following "unfavorable developments" last month at the Louisiana Public Service Commission.

At least two PSC members made cautious comments about Entergy's ( ETR ) storm cost recovery prudency and reliability, and the company's ~$1.6B proposal for Hurricane Ida storm securitization was neither approval nor denied, with a lack of votes needed to pass the approval motion.

Just the potential that Entergy ( ETR ) will not win full recovery of historical and prospective storm costs "shifts Louisiana to being a less constructive jurisdiction," BofA analysts Paul Zimbardo and Julien Dumoulin-Smith said.

It's a bad day all around for energy related equities, as crude oil falls more than 3% under the weight of a stronger dollar and weak factory activity in China .

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