Key insights
- Jefferies reiterated a Buy rating on Entergy (ETR) due to Meta's data center expansion in Louisiana, projecting a $1 EPS increase by 2030-2031. This represents a 13% upside to Street estimates. While Entergy's Q4 earnings missed expectations, the Meta deal is expected to deliver $2 billion in customer savings over 20 years. The positive outlook on Entergy could signal broader investment in utility companies supporting data center growth, but the impact is limited due to the specific nature of the deal.
Investing.com - Jefferies reiterated a Buy rating and $114.00 price target on Entergy Corp (NYSE:ETR) following Meta’s expansion of its Louisiana Hyperion campus. The stock currently trades at $111.74, up 25.78% over the past year and near its 52-week high.
The expansion includes more than 8 gigawatts of new natural gas, solar, storage, and nuclear uprate investments. Jefferies estimates the project will add approximately $1 per share to earnings per share run-rate in 2030-2031.
The firm said the impact represents more than 13% upside to Street estimates, the highest in its utilities coverage universe by a wide margin. Jefferies analyst Paul Zimbardo stated, "Entergy remains the best way to invest in data centers in the cover utility coverage."
The rating and price target remain unchanged from Jefferies’ previous assessment. The $114.00 price target reflects the firm’s valuation of Entergy’s growth prospects.
Entergy Corp is a utility company serving customers in Arkansas, Louisiana, Mississippi, and Texas.
In other recent news, Entergy Corporation reported its fourth-quarter 2025 earnings, which did not meet analysts’ expectations. The company posted earnings per share of $0.51, falling short of the forecasted $0.54, and reported revenue of $2.92 billion, missing the expected $3 billion. This represents a negative surprise of 5.56% for EPS and a 2.67% shortfall in revenue. Additionally, Entergy Louisiana announced an agreement with Meta for a hyperscale data center in Northeast Louisiana. This deal is expected to deliver approximately $2 billion in customer savings over 20 years. The agreement is structured to ensure Meta pays its full cost of service. Combined with a previously announced $650 million in benefits, total customer savings are projected to reach around $2.65 billion over two decades. These recent developments reflect Entergy’s ongoing business activities and financial performance.
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