Reiterate Buy—Pricing Cottonwood and the Meta Self-Build as Two Separate Bets

研报英文原文证据摘录

Reiterate Buy—Pricing Cottonwood and the Meta Self-Build as Two Separate Bets

a fast track mirroring the approved Meta project. Meta's data center is one of

the largest in the world.

ETR trades at a reasonable ~9% P/E premium

Our estimates sit above Consensus where it matters, in the outer years. We model FY30E EPS on 2029 and looks even cheaper on 2030+.

of $7.59, above consensus at $7.24 and above the $7.20 guidance midpoint. We are slightly below While we do not expect new data center

Street in 2026 to 2028, so any earnings surprise skews later and to the upside. We still see scope announcements/capex increases with 2Q26

for positive revisions but more long-term. so soon after the Investor Day, there are still

four large turbine slots available that can

Shares screen as less cheap through 2028 but more are correctly looking at long-term benefit 2030-2031 EPS. As the national data

valuations. The strong run has already happened: ETR re-rated over the past year, then gave center outlook gets more difficult by the day

some of it back following the equity issuance and into the June Investor Day and the Cottonwood with increasing opposition, Entergy's states

headlines. We see Evest/Meta approval, new contracts, and large load ramps leading to modest upside represent a safer place where data centers

to Street and ultimately further multiple rerating. are true economic drivers.

The near-term calendar is busy and, on balance, constructive. Cottonwood is targeted for the Fall, Exhibit 1 - Entergy FY3 Relative P/E Premium

the commission election is November 3, and Evest is scheduled for December 16. These are before to Utilities Peers

ETR should have a greater premium to reflectthe current, pro-project commission turns over in January 2027.