In a report released today, Ross Fowler from Bank of America Securities reiterated a Hold rating on NextEra Energy, with a price target of $84.00.
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Ross Fowler has given his Hold rating due to a combination of factors influencing NextEra Energy’s financial outlook. The company is expected to report a slight decline in Q3’25 operating earnings per share compared to the previous year, with anticipated earnings of $1.00 per share versus $1.03 per share last year. This projection is slightly below the consensus expectation of $1.01 per share. While there are positive drivers such as investment in the regulated utility rate base and improved wind resources, these are counterbalanced by increased interest expenses and equity dilution.
Additionally, while NextEra Energy is likely to reaffirm its strategic and financial guidance during its upcoming investor meeting, no significant updates are expected from the Q3 earnings call. The ongoing rate case in Florida and the potential for large load opportunities, such as data centers, are notable factors, but the financial impact remains uncertain until the rate case is concluded. Despite raising the price objective to $84 from $76, reflecting an updated peer group P/E multiple and improved premium allocation, the overall outlook remains cautious, justifying the Hold rating.
According to TipRanks, Fowler is a 5-star analyst with an average return of 9.5% and a 68.82% success rate. Fowler covers the Utilities sector, focusing on stocks such as Eversource Energy, Alliant Energy, and Sempra Energy.