UBS maintains Buy on NextEra Energy, keeps $84 target

On Tuesday, UBS analyst Daniel Ford maintained a Buy rating on NextEra Energy (NYSE:NEE) with a steady price target of $84.00. According to InvestingPro data, the stock currently trades at $71.90, with analyst targets ranging from $52 to $103. The company, valued at $148 billion, currently appears fairly valued based on InvestingPro’s comprehensive Fair Value analysis. Ford’s assessment follows developments in the Florida rate case, where the Office of Public Counsel (OPC) suggested a lower than expected 9.2% return on equity (ROE) but agreed with NextEra Energy’s equity ratio. The divergence in ROE projections between NextEra and the OPC was highlighted as a significant factor. Notably, InvestingPro data shows the company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 3.15%.

Ford anticipates a more favorable final verdict than the OPC’s recommendation and points to the upcoming Florida Public Service Commission’s Staff recommendation on June 17, 2025, as a pivotal moment. This forthcoming recommendation is expected to clarify the potential outcomes of the rate case.

The UBS analyst’s commentary comes after a detailed review of three different valuation methods for NextEra Energy Renewables (NEER), which was covered in a recent report. These valuation approaches provide a framework for assessing the company’s financial health and market potential.

NextEra Energy’s stock rating and price target have been a subject of investor interest, especially in the context of regulatory decisions that can significantly impact the company’s financial performance. The Florida rate case is particularly important as it determines the allowed return on equity, which can influence the company’s profitability and attractiveness to investors.

Investors and stakeholders in NextEra Energy are now likely to watch for the Florida Public Service Commission’s Staff recommendation, which will offer further insights into the company’s financial outlook and could potentially affect its stock performance. InvestingPro analysis reveals the company maintains a "FAIR" overall financial health score, with particularly strong marks in profitability metrics. For deeper insights into NextEra Energy’s financial health and valuation, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

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 falling short on revenue. The company achieved an EPS of $0.99, exceeding the forecasted $0.91, while revenue was $6.25 billion, below the expected $6.71 billion. Mizuho (NYSE:MFG) Securities adjusted its outlook on NextEra Energy, reducing the stock’s price target from $73.00 to $69.00, while maintaining a Neutral rating, acknowledging the company’s effective management of tariff and tax credit concerns. Erste Group downgraded NextEra Energy’s stock from Buy to Hold, citing concerns over the company’s rising debt levels despite a positive outlook for earnings and dividends. The company is anticipated to see a 6% to 8% annual increase in earnings per share through 2027, with dividends expected to grow by approximately 10% annually until at least 2026. NextEra Energy’s commitment to renewable energy is reflected in its strategic investments, including a nearly 9% year-over-year increase in adjusted EPS and significant investments in solar and renewable energy projects. The company’s Florida Power & Light division reported an EPS increase of $0.07, while Energy Resources saw adjusted earnings growth of nearly 10%. Investors and analysts will be closely monitoring NextEra Energy’s financial management, particularly its approach to handling rising debt levels while continuing its investment in renewable energy projects.

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