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Investing.com - Mizuho has raised its price target on Brookfield Renewable Energy (NYSE:BEP) stock to $27.00 from $26.00 while maintaining a Neutral rating. The stock, which offers a substantial 5.85% dividend yield and has maintained dividend payments for 27 consecutive years, has gained 17.32% year-to-date.
The price target adjustment follows Mizuho’s attendance at Brookfield Renewable Partners’ analyst day in Toronto on Thursday, where management reaffirmed its target of 10%+ funds from operations (FFO) per unit growth for 2025. According to InvestingPro analysis, the company operates with a significant debt burden and is quickly burning through cash, factors that investors should monitor closely.
Brookfield Renewable expects to achieve a development run-rate of approximately 10 gigawatts annually by 2027 and expressed optimism about its merger and acquisition strategy and capital recycling program.
The company reassured investors that the eventual end of solar and wind tax credits would not significantly impact its operations, citing its substantial $4.7 billion in available liquidity as providing flexibility to pursue new opportunities despite current unfavorable conditions for wind and solar in the U.S.
Over the next five years, Brookfield Renewable will recontract approximately 6.5 terawatt-hours, which it projects will generate around 2% annual FFO growth, while the company has deliberately avoided trends such as offshore wind and residential solar.
In other recent news, Brookfield Renewable Partners LP announced its second-quarter 2025 earnings, showing a mixed financial outcome. The company reported an earnings per share (EPS) of -$0.22, which fell short of the analyst forecast of -$0.1584. However, Brookfield Renewable achieved a notable revenue performance with actual revenues of $1.69 billion, significantly surpassing the expected $1.02 billion. This revenue surprise highlights the company’s strong operational capabilities despite the EPS miss. In light of these results, market reactions were mixed, reflecting investor concerns primarily due to the earnings per share shortfall. These recent developments underline the importance of monitoring Brookfield Renewable’s financial health closely.
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