Analyst Carly Davenport of Goldman Sachs maintained a Buy rating on NextEra Energy, retaining the price target of $91.00.
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Carly Davenport’s rating is based on a combination of factors that highlight the potential for growth and stability in NextEra Energy’s operations. Despite some regulatory uncertainty due to an alternate settlement proposal for Florida Public & Light’s rate increase, Davenport is optimistic about NextEra’s historical ability to reach constructive settlements in Florida. The initial settlement proposal by FPL, which includes a modest average bill increase of 2% through 2030, is seen as a balanced approach that supports continued growth without significant rate hikes.
Moreover, the proposal allows NextEra to maintain its growth trajectory in Florida by utilizing mechanisms like rate stabilization and SoBRA, which help manage costs effectively over the rate case period. The expectation of a final commission order in the fall further solidifies the outlook for stability. These elements collectively contribute to the Buy rating, as they suggest a favorable environment for NextEra’s financial performance and shareholder returns.
In another report released on August 22, J.P. Morgan also maintained a Buy rating on the stock with a $87.00 price target.
NEE’s price has also changed slightly for the past six months – from $71.010 to $74.840, which is a 5.39% increase.