Melius initiates NextEra Energy stock with Buy rating on renewable leadership

Published 20/08/2025, 12:34
Melius initiates NextEra Energy stock with Buy rating on renewable leadership

Investing.com - Melius Research initiated coverage on NextEra Energy (NYSE:NEE) with a Buy rating and a price target of $77.00 on Wednesday. According to InvestingPro data, the stock currently trades at $76.51, with analyst targets ranging from $52 to $103.

The research firm highlighted NextEra’s dual business model, which combines regulated utility operations through Florida Power & Light with independent power production via NextEra Energy Resources.

NextEra currently stands as the world’s largest provider of renewable energy and ranks as the fifth-largest capital spender in the United States, according to Melius Research.

The company maintains a "solid, high quality and well-committed pipeline of growth at high returns," with significant investments in batteries, hydrogen development, and grid modernization projects.

While renewable energy remains NextEra’s primary near-term focus, the company is also exploring nuclear restart opportunities and would consider new natural gas generation facilities, Melius noted in its coverage initiation.

In other recent news, NextEra Energy reported its second-quarter 2025 adjusted earnings of $1.05 per share, surpassing analyst expectations of $0.98 per share. However, the company’s revenue fell short of forecasts, coming in at $6.7 billion compared to the consensus estimate of $7.29 billion. Following these results, Mizuho (NYSE:MFG) raised its price target for NextEra Energy to $74.00 from $69.00, maintaining a Neutral rating on the stock. UBS also reiterated its Buy rating and maintained a price target of $84.00, expressing confidence in the company’s long-term earnings growth potential.

In financial operations, NextEra Energy completed the remarketing of approximately $2 billion in Series M Debentures, setting the interest rate at 4.685% per year. Additionally, the company declared a regular quarterly dividend of $0.5665 per share, payable on September 15, 2025, to shareholders of record as of August 28, 2025. These developments indicate ongoing financial maneuvers and strategic planning by NextEra Energy to maintain investor confidence and financial stability.

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