Utility giant NextEra Energy has made a $15 billion all-stock acquisition offer for Evergy, Reuters has learnt.
Per the Reuters report, the offer price values Evergy in the mid $60 per share. However, NextEra’s (NEE) bid has in recent days been rejected by Evergy as the latter finds the offer inadequate. Also, Evergy wants a detailed plan to overcome regulatory hurdles related to the transaction, according to Reuters.
Earlier, on Nov. 2, NextEra announced that it had reached an accord to sell “a 90% interest in a 1,000 megawatt (MW) portfolio of long-term contracted renewables assets (the portfolio) and a 100% interest in a 100-MW solar-plus-storage project for approximately $1.3 billion in total proceeds” to NextEra Energy Partners and a consortium of private investors led by KKR. (See NEE stock analysis on TipRanks).
On Oct. 22, Merrill Lynch analyst Julien Dumoulin Smith maintained a Buy rating on the stock with a price target of $80.50 (6.6% upside potential). In a note to investors, Smith said that “We are Buy rated on NEE as we see continued tailwinds driven by execution at the utilities and renewable procurement, benefits from election dynamics, and early discussions of hydrogen opportunities driving shares higher.”
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 3 Holds. With shares up nearly 15% year-to-date, the average price target of $75.79 implies that the stock is almost fully priced at current levels.
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