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Investing.com - BMO Capital has raised its price target on NextEra Energy (NYSE:NEE) to $81.00 from $78.00 while maintaining an Outperform rating ahead of the company’s second-quarter earnings report. The utility giant, currently trading at $76.57, maintains a "Buy" consensus among analysts with targets ranging from $52 to $103. According to InvestingPro data, the company has maintained dividend payments for 55 consecutive years, with a current yield of 3%.
NextEra Energy is scheduled to release its second-quarter 2025 earnings on July 23. BMO Capital has revised its Q2 2025 estimate to $1.04 per share, representing approximately 8% year-over-year growth and slightly above the FactSet and Bloomberg consensus estimates of $1.01. InvestingPro analysis reveals that 4 analysts have recently revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s performance.
The firm expects investor focus to center on the Offshore Building Better Act (OBBBA), the President’s Executive Order, and management’s interpretation of implications for the safe harbor of project tax credits during the upcoming earnings call.
Additional areas of investor interest likely include the ongoing Florida Power & Light (FPL) rate case and updated outlooks for tariff impacts and backlog origination, according to BMO Capital.
The price target increase is based on BMO’s sum-of-the-parts (SOTP) and mark-to-market (MTM) valuation methodology for the utility company.
In other recent news, NextEra Energy has been the focus of several significant developments. UBS has reiterated its Buy rating on NextEra Energy, maintaining a price target of $84.00. This decision follows positive outcomes from the recent budget reconciliation bill and the Senate’s more favorable approach to renewable tax credit phase-outs compared to the House version. The Senate’s gradual approach is seen as beneficial for NextEra’s business planning, providing more flexibility in managing earnings impacts. Additionally, UBS highlighted the company’s operational runway extending to 2029 due to these legislative changes.
However, Erste Group has downgraded NextEra Energy’s stock from Buy to Hold. Analyst Hans Engel cited concerns over the company’s rising financial leverage and increased net interest expenses. Despite these concerns, Engel acknowledged the potential for a 6% to 8% annual increase in earnings per share through 2027 and a 10% annual dividend growth until at least 2026. Meanwhile, developments in the Florida rate case have also drawn attention, with UBS anticipating a more favorable outcome than the Office of Public Counsel’s recommendation. Investors are closely watching the Florida Public Service Commission’s upcoming recommendation, which could further impact the company’s financial outlook.
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