Nextera Energy Partners (NYSE:NEP) Continues its String of Losses
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Nextera Energy Partners (NYSE:NEP) Continues its String of Losses

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Nextera Energy Partners continues its downhill slide, prompted by troubling macro conditions and declining investor sentiment.

Another day, another set of disheartening losses emerged for energy stock Nextera Energy Partners (NYSE:NEP). Last week’s performance was bad enough, but now, we discover there’s not much suggesting that things will turn around. Nextera sunk better than 13.5% in Monday afternoon’s trading session, and the bottom may not yet be in sight.

Nextera managed—as a result of its decline in today’s trading—to reach the lowest intraday price since December 2016. A combination of factors contributed to today’s open decline, starting with cuts to its estimates of future growth, which came as a surprise to most analysts and investors. Follow that up with its parent company, NextEra Energy (NYSE:NEE), deciding to go against plans to stage an asset dropdown, and the whole matter only snowballed.

That’s when things got worse. Nextera took a downgrade at Wells Fargo, with analyst Neil Kalton falling back from Buy to Hold. Kalton also devastated the price target, lowering it from $80 to its new $33. Kalton noted that Nextera has something of a fatal flaw that’s feeling particular pressure these days: its ability to raise equity and debt capital. Combine declining investor sentiment—as measured by the multi-day sell-off already in progress—with high-interest rates, and it’s a tailor-made disaster.

Is Nextera Energy Partners Stock a Good Buy?

Despite this, however, Nextera still has some analyst support. With six Buy ratings and six Holds, Nextera Energy Partners stock is considered a Moderate Buy. Further, Nextera Energy Partners stock also offers investors 88.29% upside potential thanks to its average price target of $48.09.



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