NextEra Energy stock target cut to $77 by BMO Capital

On Monday, BMO Capital Markets adjusted its outlook on NextEra Energy (NYSE:NEE), reducing the firm’s price target on the shares from $84.00 to $77.00, while still maintaining an Outperform rating. With the stock currently trading at $67.63, InvestingPro analysis suggests the stock is slightly overvalued at current levels, though analyst targets range from $52 to $103 per share. The adjustment comes as the analyst at BMO Capital, James Thalacker, revises the first quarter 2025 earnings estimate for NextEra Energy to $1.02 per share, up from the $0.91 reported in the first quarter of 2024.

Thalacker attributes the positive year-over-year comparison to growth at Florida Power & Light (FPL) and a more significant contribution from NextEra Energy Resources (NEER). However, these gains are somewhat mitigated by increased interest and dilution within the Corporate & Other segment of the company. The analyst anticipates that the upcoming earnings call will likely concentrate on the potential for substantial changes to the Inflation Reduction Act (IRA), the cost implications of evolving trade tariffs and supply chain impacts, and updates on widening credit spreads and financing plans.

The reduction in the target price to $77 reflects a mark-to-market (MTM) of peer group multiples, according to the analyst’s statement. This suggests that the valuation is being adjusted in line with the current market conditions and valuations of similar companies in the industry.

NextEra Energy, a leading company in the renewable energy sector, has been closely watched by investors, especially given the current global focus on sustainable energy solutions. The company’s performance and outlook, particularly in terms of regulatory changes, trade tariffs, supply chain challenges, and financing, are critical factors that could influence its stock value and investor sentiment.

Investors and market watchers will be looking forward to the company’s earnings call, scheduled for April 23, where further details on NextEra Energy’s financial performance and strategic direction are expected to be discussed. The insights provided will likely help in assessing the company’s position in the rapidly evolving energy market. With an EBITDA of $13.12 billion and a market cap of $139.2 billion, NextEra maintains a significant presence in the utility sector. For deeper insights into NextEra’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips in the detailed Pro Research Report, available exclusively on the platform.

In other recent news, NextEra Energy has announced a series of executive leadership changes, effective May 22, 2025. Rebecca Kujawa, the current President and CEO of NextEra Energy Resources, will retire, and Brian W. Bolster will take over her roles. Michael H. Dunne will succeed Bolster as Executive Vice President, Finance, and Chief Financial Officer. Additionally, William J. Gough will become Vice President, Controller, and Chief Accounting Officer. These transitions are part of a planned succession process to ensure strategic continuity within the company. Furthermore, NextEra Energy has filed for a new four-year base rate plan with the Florida Public Service Commission, seeking annual revenue requirement increases starting in 2026. The plan includes provisions for solar and battery storage projects, with hearings expected in the third quarter of 2025. Jefferies has maintained its Hold rating on NextEra Energy with a price target of $77, noting the upcoming leadership changes and policy reforms as key factors for investors to watch.

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