Mizuho cuts NextEra Energy price target to $69, retains neutral rating

Published 24/04/2025, 12:46
Mizuho cuts NextEra Energy price target to $69, retains neutral rating

On Thursday, Mizuho (NYSE:MFG) Securities adjusted its outlook on NextEra Energy (NYSE:NEE), reducing the stock’s price target from $73.00 to $69.00, while maintaining a Neutral rating. Mizuho’s analysis indicates that NextEra Energy is poised to achieve earnings growth at or near the higher end of its projected 6%-8% range. The firm acknowledges that NextEra Energy has effectively managed concerns regarding tariffs and tax credits, two significant factors in the assessment. According to InvestingPro data, the company, currently valued at $138.4 billion, appears slightly overvalued based on its Fair Value analysis, with analysts’ price targets ranging from $52 to $103.

NextEra Energy’s management has taken steps to mitigate tariff exposure by being proactive with its supply chain over recent years, leveraging the company’s substantial size and scale. Additionally, management is confident there is sufficient bipartisan support in Congress to sustain the Investment Tax Credit ( ITC (NSE:ITC)) and its transferability, which are key components of the Inflation Reduction Act (IRA).

The Florida Power & Light (FPL) rate case is currently underway, with staff and intervenor testimony expected in June. A potential settlement could be negotiated by mid-summer. However, the possibility of a repeal of IRA tax credits presents a risk, prompting Mizuho to remain on the sidelines with a Neutral rating.

The reduction in the price target to $69.00 is attributed to current market multiples, reflecting a more cautious valuation approach amidst the prevailing market conditions. The adjustment by Mizuho follows NextEra Energy’s efforts to address critical operational challenges and navigate the legislative environment impacting its business.

In other recent news, NextEra Energy reported its financial results for the first quarter of 2025, surpassing analysts’ expectations for earnings per share (EPS) but missing revenue forecasts. The company achieved an EPS of $0.99, exceeding the projected $0.91, while revenue was $6.25 billion, falling short of the anticipated $6.71 billion. Despite the revenue miss, the company’s Florida Power & Light and Energy Resources segments showed strong growth, with significant investments in solar and renewable energy projects. NextEra Energy plans to invest $50 billion from 2025 to 2029, aiming to expand its renewable energy capacity significantly. Additionally, the company expects to grow dividends by roughly 10% annually through 2026. The company’s leadership transition was also highlighted, with Brian Bolster taking over as President and CEO of NextEra Energy Resources, while Mike Dunn is set to become the CFO of NextEra Energy. Analysts from Wolfe Research and Jefferies expressed interest in the company’s tariff exposure and transferability of tax credits, with NextEra’s executives assuring strong contractual protections and a positive outlook. The company remains optimistic about meeting its financial targets despite challenges related to tariffs and supply chain complexities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.