Our 12-month target price remains $35, 25.5x our 2022 EPS estimate (unchanged at $1.37; 2023 unchanged at $1.48), a premium to peers and above CNP's historical average on reduced risk following its recent midstream business spin-off. Our moderated view is based on valuation, with CNP's attractive EPS, dividend, and rate base growth prospects meriting a peer-premium, in our opinion, though not enough to justify an even wider premium under a Strong Buy outlook. Q1 adj. EPS of $0.47 vs. $0.59 reflected lower earnings due to the midstream business spin-off and the AR and OK gas asset sales. Due to strained supply chains and U.S. Department of Commerce investigations into potential violations of tariff agreements on solar panel imports, which may threaten industry-wide solar investment near 2023-2024, CNP pulled forward capex and raised its 2022 estimate to $4.3b from $4.0b (62%-63% electric, 37%-38% gas). The company also added $0.1b to its five-year capital plan, raising the total to $19.3b through 2025.
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