NextEra Energy Partners price target lowered to $28 from $32 at BMO Capital

BMO Capital analyst James Thalacker lowered the firm’s price target on NextEra Energy Partners to $28 from $32 and keeps an Outperform rating on the shares. The firm is reducing its Q2 EBITDA view to $517M from $539M driven primarily by more normalized wind conditions, the closing of the acquisition of the 690MW wind/solar portfolio in April 2023, and partially offset by the STX pipeline sale, the analyst tells investors in a research note. BMO adds however that NextEra’s 13% current yield already discounts a 40%-50% distribution reduction, limiting further downsides potential.