Entergy

Entergy

Entergy is a regulated electric utility, providing services to approximately three million people in Arkansas, Louisiana, Texas, Mississippi and New Orleans in the US. The company expects its earnings per share (EPS) to grow by 8%-9% annually over the medium term, driven by investments in electricity generation (including renewable sources), and in power transmission and distribution.

ClearBridge, Drummonds infrastructure exposure expects Entergy to benefit from several key infrastructure themes, such as:

• Supporting industrial decarbonisation: e.g. Entergy will build 312MW of solar power to support U.S. Steel’s efforts to lower its carbon footprint
• Powering data centres: e.g. Entergy will supply electricity and connect Amazon’s US$10bn data centre investment in Mississippi
• Strengthening climate resilience: Adverse weather activity such as hurricanes, translate to more capital opportunities for Entergy

Entergy is the fastest growing utility in the US, based on official earnings guidance, led by a high-quality management team. ClearBridge see valuation upside driven by the different growth opportunities and supported by management's potential to keep extending best-in-class growth.

Source: ClearBridge