SKN | Barclays Maintains Bullish View on Entergy Despite Price Target Reduction

Key Points

• Barclays maintained its Overweight rating on Entergy while lowering its price target to $119 from $124.
• Truist Financial also remains positive on the utility, maintaining a Buy rating and a $127 price target.
• Analysts continue to highlight strong long-term growth opportunities tied to rising data center electricity demand.

Entergy Corporation continues to receive favorable analyst coverage despite recent reductions in price targets from major Wall Street firms.

Barclays lowered its price target on Entergy from $124 to $119 while maintaining an Overweight rating, signaling continued confidence in the utility’s long-term outlook. The firm noted that the stock has delivered relatively muted performance since the company’s first-quarter earnings report, creating what it views as a more attractive valuation opportunity ahead of the company’s June 9 analyst day.

According to Barclays, Entergy shares appear undervalued at current levels, with the firm believing the market may not be fully reflecting the company’s growth prospects and expanding electricity demand profile.

Truist Sees Continued Growth Potential

Truist Financial also updated its outlook for Entergy, reducing its price target modestly to $127 from $130 while maintaining a Buy rating.

Despite the adjustment, the revised target still implies meaningful upside potential from recent trading levels.

Truist remains particularly constructive on Entergy’s exposure to rapidly growing electricity demand from data centers. The firm noted that the utility’s pipeline of large-scale data center projects remains robust, with no signs of slowing demand despite several major projects already moving forward.

The analyst firm highlighted that long-term growth opportunities remain visible even after accounting for significant expansion activity involving major technology companies and hyperscale data center operators.

Data Center Demand Becomes Key Growth Driver

The growing demand for artificial intelligence infrastructure continues to reshape the outlook for many utility companies, and Entergy appears well positioned to benefit from this trend.

As data centers expand to support cloud computing, artificial intelligence applications, and high-performance computing workloads, electricity consumption is expected to rise significantly across several U.S. regions.

Utilities capable of serving these large industrial customers are increasingly attracting investor attention as long-term beneficiaries of AI-related infrastructure investment.

For Entergy, analysts view this demand trend as a potential source of sustained customer growth and higher future electricity sales.

Diversified Energy Portfolio Supports Operations

Entergy operates a diversified power generation portfolio that includes natural gas, hydroelectric, solar, coal, and nuclear energy assets.

The company serves both retail and wholesale customers, including municipalities, cooperatives, utilities, and power trading organizations. In addition to its regulated utility operations, Entergy maintains interests in non-nuclear generation facilities and provides decommissioning services for nuclear power plant owners.

This diversified asset base allows the company to participate in multiple segments of the energy market while maintaining exposure to both traditional and renewable energy sources.

Investment Outlook

While recent price target reductions may appear cautious on the surface, both Barclays and Truist continue to express confidence in Entergy’s long-term investment case.

The combination of regulated utility stability, increasing electricity demand from data centers, and a diversified generation portfolio continues to support analyst optimism.

Investors will likely focus on management commentary from upcoming analyst events, updates on large-load customer growth, capital investment plans, and the evolving impact of artificial intelligence infrastructure demand on future earnings potential.

For a confidential discussion regarding utilities, infrastructure investments, energy transition opportunities, or institutional portfolio positioning, contact our senior advisory team.