Entergy downgraded to Neutral on valuation at Ladenburg

Ladenburg downgraded Entergy to Neutral from Buy with a price target of $109.50, down from $117. On a 52-week basis, Entergy has outperformed the regulated electrics universe of 36 utility stocks by 12%, the analyst tells investors in a research note. The firm says Entergy is currently trading at an 8% price-to-earnings discount, which is appropriate given its storm damage exposure from hurricanes. Although the company is making significant progress with Louisiana and New Orleans regulators in obtaining approvals to harden its system, it will take several years for the investments to materialize, says Ladenburg, which cites valuation for the downgrade.