Wells Fargo analyst Neil Kalton has maintained their bullish stance on NEE stock, giving a Buy rating yesterday.
Neil Kalton’s rating is based on a combination of factors that highlight NextEra Energy’s strong position despite potential challenges. The company has shown a promising start to the year with a 9% increase in adjusted earnings per share for the first quarter, setting it on track to surpass its earnings guidance for 2025. Additionally, NextEra Energy Resources (NEER) has demonstrated robust origination activity by adding 3.2 gigawatts of renewables and storage to its backlog, aligning well with the company’s ambitious growth targets.
Moreover, the company’s exposure to tariffs is minimal, with an estimated impact of only $150 million against a substantial $75 billion capital plan. This risk is further mitigated by strategic agreements, such as a purchase agreement with a domestic battery supplier, which reduces tariff exposure and provides a competitive edge. Despite uncertainties surrounding renewable tax credits, Kalton remains confident in the sustained demand for renewables, driven by strong power demand and limited alternatives. Overall, these factors contribute to a favorable outlook for NextEra Energy, justifying the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $95.00 price target.