NextEra Energy selloff ‘far exceeds’ magnitude of update, says Morgan Stanley

Morgan Stanley notes that NextEra Energy (NEE) shares underperformed the utility group yesterday by greater than 6% after yieldco NextEra Energy Partners (NEP) lowered its targeted growth rate to 6% from 12%. However, the selloff in NextEra is “significantly overdone” given the “very limited financial impact on this update,” argues the analyst. The firm, which contends that the stock now prices in “minimal future growth” and expresses conviction that the fundamental growth outlook is intact, maintains an Overweight rating and $91 price target on NextEra shares.