Welower our 12-month target to $16 from $29 based on forward P/E and dividend discount model analyses. We lower our '20 and '21 EPS estimates by $0.28 each to $1.22 and $1.32, respectively, on news that midstream investment income will be cut in half. We expect near-term earnings to be negative before climbing back to the long-term average of around 6%. Our target implies a 21% discount to peers, 13.1x our '20 EPS estimate, which we feel is warranted based on CNP cutting their dividend by nearly 50%, having exposure to crude oil through its 53.7% ownership in Enable Midstream Partners (ENBL 3 ***), and also based on its high price-to-tangible book value relative to peers. Additionally, CNP's proposed sale of non-utility businesses, set to close in Q2, could be disrupted due to material changes in the general economy caused by the COVID-19 pandemic. Although we feel cutting the dividend lowers CenterPoint's business risk, we see Hold as the best option considering the totality of uncertainties.
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