NextEra Energy: Long-Term EPS Growth and Expansive Capex Pipeline Underpin Buy Rating

Goldman Sachs analyst Carly Davenport has maintained their bullish stance on NEE stock, giving a Buy rating on January 4.

Carly Davenport has given his Buy rating due to a combination of factors that underscore NextEra Energy’s long-term earnings and investment growth potential. Management reaffirmed an outlook for at least 8% annual EPS expansion through 2032, underpinned by rising electricity demand from electrification and large-load customers, with additional upside tied to a sizable $60–90 billion incremental capital investment opportunity in its development pipeline. This prospective capex, if executed, would materially enhance earnings beyond the base plan, supporting a favorable risk-reward profile for shareholders.
Carly Davenport’s rating is based on the company’s diversified and emerging growth engines, coupled with its competitive advantages in execution. The CFO pointed to robust growth at Florida Power & Light driven by anticipated data center demand, supported by a dedicated data center tariff and FPL’s ability to structure flexible solutions for customers. Further upside comes from a rapidly expanding regulated transmission base, expected to grow at a strong compound rate, along with optionality in renewables interconnections, natural gas supply via a strategic partnership, and future nuclear technologies such as SMRs. These elements, combined with the potential to enhance value through power purchase agreement recontracting, lead Davenport to view NextEra as well positioned for sustained, above-average growth, justifying a Buy recommendation.

Davenport covers the Utilities sector, focusing on stocks such as NextEra Energy, Exelon, and Sempra Energy. According to TipRanks, Davenport has an average return of 4.9% and a 59.26% success rate on recommended stocks.

In another report released on January 4, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $89.00 price target.