NextEra Energy, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Alex Kania from BTIG maintained a Buy rating on the stock and has a $98.00 price target.
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Alex Kania has given his Buy rating due to a combination of factors that underscore NextEra Energy’s strong positioning for future growth. The company is well-placed to sustain its earnings growth into the 2030s, driven by its extensive fleet of contracted renewable capacity, which holds significant value even amidst rising power prices. This long-term growth potential is crucial, especially as investors focus on the post-2030 tax credit roll-offs. If NextEra Energy can convincingly demonstrate its ability to maintain high single-digit earnings growth, it would alleviate any lingering concerns among investors.
Furthermore, the recent approval of Florida Power & Light’s long-term rate settlement provides regulatory certainty and a higher return on equity, enhancing the utility outlook. NextEra Energy’s robust renewables and storage backlog, with approximately 30 GW slated for execution through 2027, further bolsters its growth prospects. The anticipated increase in demand ahead of the 2030 PTC/ITC roll-off presents a significant opportunity. Additionally, the company’s strong track record in renewable execution positions it favorably as demand for quality renewable projects grows. The valuation approach, which combines the value of Florida Power & Light and NextEra Energy Resources, supports the Buy rating with a calculated share value of $98.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $93.00 price target.