After NextEra Energy Partners (NEP) announced a cut to its distribution growth forecast and its year-end adjusted EBITDA and CAFD run-rate outlook, Evercore ISI lowered the firm’s price target on NextEra Energy (NEE) to $80 from $82 to reflect the lower partnership distribution outlook and keeps an In Line rating on the shares. The company decided to forgo the planned asset drop down from NextEra to NextEra Partners in light of the move higher in interest rates since NextEra Energy Partners’ restructuring announcement in May, thereby lowering the partnership’s LP distribution growth rate to 5%-8% versus 12%-15% previously, the analyst noted.
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