Entergy (ETR) Stock Forecast & Price Target

Entergy is projecting a robust growth outlook, with management guiding to a compound annual growth rate (CAGR) of greater than 8% through 2028, an increase from the previous estimate of 6%-8%. Additionally, the company reported an increase in industrial sales CAGR to 13%, primarily driven by new customer acquisitions in Arkansas, along with a notable $3 billion increase in its capital expenditure plan for 2025-2028, which is fully allocated to incremental generation capacity. These factors suggest a strengthened operational momentum and an optimistic trajectory for Entergy's revenue growth and infrastructure development.

Entergy's stock has historically traded at a discount, averaging approximately -10% before a significant announcement in late 2024, indicating underlying valuation concerns. The company's regulatory environment is perceived as more challenging than what many investors might recognize, which can hinder future growth and profitability. Additionally, Entergy's customer base, primarily composed of economically-sensitive industrial consumers and lower-income residential clients in a hot and humid climate, raises concerns about resilience in the face of a potentially unstable global macroeconomic landscape.