NextEra Energy, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst David Arcaro from Morgan Stanley maintained a Buy rating on the stock and has a $95.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
David Arcaro has given his Buy rating due to a combination of factors that highlight NextEra Energy’s favorable position in the market. The recent constructive settlement in the Florida Power & Light (FPL) rate case is a significant factor, as it includes a modest increase in the Return on Equity (ROE) and a rate stabilization mechanism. This settlement is slightly better than expected, which supports the company’s above-average earnings per share growth outlook of 6-8% or more.
Additionally, the settlement has garnered support from several key stakeholders, which adds credibility and stability to the agreement. The four-year term of the settlement, beginning in January 2026, along with the inclusion of deferred tax liabilities and ITC amortization for battery storage projects, further strengthens the company’s financial outlook. These elements collectively contribute to a positive assessment of NextEra Energy’s stock, justifying the Buy rating.
Arcaro covers the Utilities sector, focusing on stocks such as Sempra Energy, NextEra Energy, and DTE Energy. According to TipRanks, Arcaro has an average return of 14.7% and a 66.35% success rate on recommended stocks.
In another report released yesterday, Melius Research also initiated coverage with a Buy rating on the stock with a $100.00 price target.