Analyst Ross Fowler from Bank of America Securities reiterated a Hold rating on NextEra Energy and keeping the price target at $84.00.
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Ross Fowler’s rating is based on a combination of factors that highlight both the strengths and challenges facing NextEra Energy. The company reported strong third-quarter earnings, with adjusted EPS surpassing both the previous year’s figures and market expectations. This performance was driven by improvements in both Florida Power and Light and NextEra Energy Resources, aided by new investments and increased customer supply. Additionally, the company’s agreement with Google to restart the Duane Arnold nuclear facility and its pursuit of data center powering opportunities are positive developments.
However, despite these positives, Ross Fowler maintains a Hold rating due to the stock’s valuation. The current share price reflects a significant premium compared to other utility peers, which already accounts for NextEra’s higher growth prospects. While the company reaffirmed its EPS growth guidance and expects to achieve growth at the high end of its range, the existing valuation suggests limited upside potential in the near term. Therefore, the Hold rating reflects a balanced view of the company’s strong operational performance against its current market valuation.
In another report released today, Barclays also maintained a Hold rating on the stock with a $88.00 price target.
NEE’s price has also changed moderately for the past six months – from $66.190 to $83.570, which is a 26.26% increase.