Replies to post #41 on Entergy Corporation (ETR)

[Timothy Smith]

Entergy (ETR +0.1%) is upgraded to Overweight from from Equal Weight with a $71 price target, down from $73, at Barclays in response to the company's shift in strategic focus to the regulated business, improved regulatory constructs and a potential near-term dividend hike.

The firm says management is de-emphasizing the ongoing contribution of EWC and working toward presenting a clean and improving utility growth story to investors; although ETR has been internally moving in this direction for a while, the firm is increasingly more comfortable the message will begin resonating with the investment community.

[Timothy Smith]

ETR says it will close its Pilgrim nuclear power plant in Plymouth, Mass., by June 2019, citing poor market conditions, reduced revenues and increased operating costs.

ETR says current and forecast power prices have fallen ~$10/MW hour for an annual loss of more than $40M in revenue for the Pilgrim plant, the only nuclear power plant in Massachusetts.

ETR says it expected the plant to incur annual after-tax net losses on an operational basis of $10M-$30M for 2015, 2016 and 2017, before accounting for additional costs related to the decision to close the plant and any potential writedowns.