Bank of America Reiterates Buy Rating on CenterPoint Energy

According to a recent report from Bank of America, CenterPoint Energy (NYSE: CNP) expects to receive $1.85B of proceeds from the Texas Supreme Court decision. Bank of America looks at CNP for four potential uses of cash including debt payments, share buyback, investing in utility, and investing in field service projects. Bank of America maintains a Buy rating and $21.00 price target on CNP.

In the report, Bank of America said, "In our current estimates we do not assume any use of the cash, and have it sitting on the balance sheet at a 1% return. This is the least earnings accretive use of cash. We have chosen to run a few scenarios at different returns to analyze earnings and valuation impact."

CenterPoint Energy closed yesterday at $19.09.