JPMorgan cuts XPLR Infrastructure price target, says selloff ‘somewhat overdone’

JPMorgan analyst Mark Strouse lowered the firm’s price target on XPLR Infrastructure (NEP) to $13 from $20 and keeps a Neutral rating on the shares after the company, formerly NextEra Energy Partners, provided its “much anticipated” strategic update in conjunction with Q4 results and said it will convert from a YieldCo business model and is suspending its dividend indefinitely. This aligned with the firm’s expectation, though was “significantly lower than consensus expectations of just a 34% cut,” says the analyst. The stock has traded down 34% since the update yesterday morning, which the firm views being at least partially driven by a shakeout of the investor base as yield investors exit, adding that it believes the selloff is “somewhat overdone.”