Entergy downgraded to Neutral from Buy at BofA

BofA downgraded Entergy (ETR) to Neutral from Buy with a price target of $154, up from $138. In conjunction with its Q3 earnings announcement, the company updated its strategic business plan with a higher capital spending forecast, higher sales growth forecast, higher EPS guidance and a higher EPS growth rate, while also having disclosed that it has entered into a service agreement with a large customer in Louisiana that will require construction of three new combined cycle units and also disclosed that it is pursuing the development of nuclear units. While recognizing the value created by this strategic update, the firm also appreciates the associated execution risk and cites both that risk and the current valuation for its downgrade.