Carly Davenport, an analyst from Goldman Sachs, maintained the Buy rating on NextEra Energy. The associated price target remains the same with $91.00.
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Carly Davenport has given her Buy rating due to a combination of factors surrounding NextEra Energy’s recent developments. The proposed settlement agreement on the 2025 rate case at Florida Power & Light is a significant factor, as it outlines a cumulative rate increase of approximately $1.7 billion for 2026 and 2027. This agreement includes a higher return on equity (ROE) midpoint of 10.95%, which is an improvement from the current 10.8%, with a band of +/- 100 basis points.
The settlement is seen as constructive for NextEra Energy, providing a clearer path for capital expenditures and earnings through 2029. Although the proposed settlement is not yet included in the estimates, if the company achieves the upper end of the ROE range in 2026/2027, there could be a 2% upside to the published earnings per share. Additionally, the agreement maintains the company’s equity layer at 59.6%, which supports the potential for continued earnings growth and reduces risk.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $95.00 price target.
NEE’s price has also changed slightly for the past six months – from $70.140 to $76.180, which is a 8.61% increase.