NextEra Energy Partners downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Mark Strouse downgraded NextEra Energy Partners (NEP) to Neutral from Overweight with a price target of $40, down from $69. The company significantly lowered its targeted dividend growth based on an inability to accretively add drop-downs from parent company NextEra Energy (NEE), owing to an elevated cost of capital, the analyst tells investors in a research note. The firm does not expect NextEra Energy Partners’ cost of capital for new acquisitions to meaningfully improve in the near-term.