Jefferies starts coverage on CenterPoint Energy with 'buy' rating

Brokerage Jefferies starts coverage on utility CenterPoint Energy CNP.N with "buy" rating and $42 PT, citing a "compelling re-rating story"

PT represents a 14% upside to the stock's last close

Brokerage expects strong earnings growth, driven by CNP's history of "meeting or exceeding its earnings guidance in recent years"

Says co's regulatory clarity has improved, with "four constructive rate case settlements" and a successful mobile gen asset transfer, giving it "more confidence" in CNP's outlook

Houston-area electric demand expected to grow ~50% by 2031, driven by energy refining, commercial expansion, and logistics - brokerage

Says co is "on track to return to the 14%+ target" for its ability to generate cash flow relative to its debt levels

As of last close, CNP up ~16% YTD