JP Morgan Initates Coverage of CenterPoint Energy (CNP)

JP Morgan analysts Andrew Smith and Stefka Gerova initiated coverage of CenterPoint Energy (NYSE: CNP). CenterPoint engages in distribution of electricity and natural gas.

JP Morgan thinks CNP pays an attractive dividend and offers stability for long term investors. Investors could get a 10-12% annual return.

The analysts said, "CenterPoint derives about 80% of its earnings from regulated businesses and structures its remaining businesses to dampen potential volatility. We expect this to result in stable, predictable EPS."

CNP shares offer about a 5.7% dividend yield.

The analysts initiated with an Overweight rating, with a price target of $16.00. Shares of CNP are currently trading at $13.72.