Jefferies maintains hold on NextEra Energy, target at $77

Published 18/03/2025, 14:38
Jefferies maintains hold on NextEra Energy, target at $77

Tuesday, Jefferies reconfirmed its Hold rating on NextEra Energy (NYSE:NEE) stock with a steady price target of $77.00, falling within the broader analyst target range of $52 to $103. The firm’s analysts noted the upcoming retirement of Rebecca Kujawa, the head of NEE Renewables, who is set to depart on May 22, 2025. Kujawa, 49, had previously expressed her intention to leave the company three years ago during the CEO succession, indicating a desire to move on after not being selected for the CEO position. According to InvestingPro data, NextEra Energy has maintained an impressive track record of dividend payments for 55 consecutive years, demonstrating strong corporate governance and financial stability.

The announcement of Kujawa’s retirement comes at a critical time for NextEra Energy, as the company is poised to focus on the implications of the Inflation Reduction Act (IRA) reform under a reconciliation bill. With a substantial market capitalization of $147.3 billion and a healthy gross profit margin of 60%, the company appears well-positioned to execute its strategic initiatives. The firm also highlighted the significant development targets expected to ramp up in 2026 and beyond. Jefferies views Kujawa’s retirement as a cautious data point, although it is not entirely unexpected given her past statements.

NextEra Energy, a leading company in the renewable energy sector, is navigating a transformative period in the industry, with policy reforms and development goals that could shape its future growth trajectory. The company’s financial health score of 2.38 (rated as ’FAIR’ by InvestingPro) suggests stable operational performance, while its dividend yield of 3.14% and impressive 21.18% dividend growth over the last twelve months demonstrate strong shareholder returns. The departure of a high-level executive like Kujawa is noteworthy for investors and the market as it may influence the company’s strategic direction and execution of its ambitious development plans.

The $77.00 price target set by Jefferies reflects the firm’s assessment of NextEra Energy’s current valuation and future prospects. As of now, the firm has not altered its view on the stock, maintaining a neutral stance with the Hold rating.

Investors and market watchers will likely monitor how NextEra Energy manages this transition in leadership, especially in light of the upcoming policy changes and the company’s development targets. The retirement of a key executive is an important event for any company, and NextEra Energy will be expected to navigate the change while maintaining its focus on growth and innovation in the renewable energy sector.

In other recent news, NextEra Energy Inc . has announced a series of executive leadership changes that will take effect on May 22, 2025. Rebecca Kujawa, the President and CEO of NextEra Energy Resources, a subsidiary of NextEra Energy, will retire, and Brian W. Bolster will succeed her. Michael H. Dunne will assume Bolster’s current role as Executive Vice President, Finance, and Chief Financial Officer of both NextEra Energy and Florida Power & Light Company. William J. Gough will take over as Vice President, Controller, and Chief Accounting Officer of NextEra Energy. These leadership changes are part of a structured succession plan and have been detailed in a recent SEC filing.

Additionally, NextEra Energy and its subsidiary Florida Power & Light Company have filed a petition with the Florida Public Service Commission seeking approval for a new four-year base rate plan starting in January 2026. The proposal includes annual revenue requirement increases of approximately $1.545 billion in 2026 and $927 million in 2027. The plan also introduces a Solar and Battery Base Rate Adjustment to recover costs for upcoming solar and battery storage projects. If approved, the company commits not to request further base rate increases before 2030. These developments reflect ongoing efforts by NextEra Energy to ensure strategic leadership continuity and financial planning.

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