NextEra Energy (NEE – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst James Thalacker from BMO Capital reiterated a Buy rating on the stock and has a $78.00 price target.
James Thalacker has given his Buy rating due to a combination of factors that highlight NextEra Energy’s strong performance and strategic positioning. The company reported first-quarter earnings per share that were in line with expectations, and management reaffirmed its guidance for the coming years, indicating confidence in future performance. Notably, the origination activity at NextEra Energy Resources exceeded expectations, driven by substantial growth in solar and battery storage projects, which enhances the company’s renewable energy portfolio.
Furthermore, Thalacker points out the company’s effective management of tariff exposure, thanks to its diversified supply chain and strategic supply contracts. This positions NextEra Energy to mitigate potential risks associated with tariffs. The company’s proactive measures, such as securing domestic battery cell supply contracts, and its engagement with policymakers regarding renewable energy tax credits, underscore its commitment to maintaining a competitive edge. These factors, combined with the company’s thematic and quality attributes, support the Buy rating as NextEra Energy is seen as a core holding with a premium valuation in the renewable energy sector.
Thalacker covers the Utilities sector, focusing on stocks such as Centerpoint Energy, Duke Energy, and PG&E. According to TipRanks, Thalacker has an average return of 12.7% and a 63.69% success rate on recommended stocks.
In another report released yesterday, Scotiabank also maintained a Buy rating on the stock with a $96.00 price target.