** 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
(Reporting by Kamal Choudhury in Bengaluru)
((Kamal.Choudhury@thomsonreuters.com;))
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