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Investing.com - UBS raised its price target on Brookfield Renewable Energy (NYSE:BEP) stock to $38.00 from $29.00 on Thursday, while maintaining a Buy rating on the shares. The new target represents significant upside from BEP’s current price of $30.73, though InvestingPro data suggests the stock is trading above its Fair Value, with shares already up 41.28% year-to-date.
The price target increase reflects a lower interest rate environment and higher growth expectations driven by Westinghouse, according to UBS.
The firm now applies a 4.2% target dividend yield to Brookfield Renewable’s 3Q26-2Q27E cumulative dividend per share, down from its previous 5.5% target yield.
UBS noted that the new target dividend yield represents approximately a 150 basis point premium to the yield of the Vanguard High Dividend Yield index (VYM) and is in line with the 5-year average spread.
The firm reduced its premium by 100 basis points to reflect the declining interest rate environment and similar spreads observed during the last rate cut cycle from December 2018 to December 2021.
In other recent news, Brookfield Renewable Energy reported its second-quarter 2025 earnings with a mixed outcome. The company missed earnings per share (EPS) estimates, posting -$0.22 compared to the expected -$0.1584. However, it delivered a significant revenue surprise, reporting $1.69 billion against the anticipated $1.02 billion. In analyst updates, BMO Capital raised its price target for Brookfield Renewable Energy to $36.00 while maintaining an Outperform rating. This adjustment comes after the announcement of a strategic partnership involving an $80 billion investment in new nuclear power facilities. RBC Capital reiterated its Outperform rating with a price target of $31.00, maintaining a positive outlook on the company. Mizuho also raised its price target to $27.00, citing growth prospects highlighted during Brookfield’s analyst day in Toronto. These developments reflect a continued interest and varied perspectives from analysts on Brookfield’s future performance.
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