UBS reiterates Buy rating on NextEra Energy stock, maintains $84 target

Investing.com - UBS reiterated its Buy rating on NextEra Energy (NYSE:NEE) on Friday, maintaining its $84.00 price target for the utility company. According to InvestingPro data, analyst targets for NEE range from $52 to $103, with the company currently commanding a market capitalization of $149 billion.

The investment firm characterized recent developments regarding solar import reviews and an alternative rate settlement for Florida Power & Light (FPL) as "distractions" that don’t change the fundamental investment thesis.

UBS highlighted NextEra’s submission of what it called a "constructive rate settlement for customers" and noted the company maintains a "consistent NextEra Energy Resources growth story."

The firm referenced its recent analysis of new growth initiatives at NextEra Energy Resources that could benefit the company in 2029-2030, suggesting longer-term value beyond current projections.

UBS believes NextEra Energy deserves a valuation premium compared to other utility stocks, noting the company currently trades at 17.1x estimated 2027 earnings of $4.33, while the $84 price target implies a 14% premium to the utility group’s price-to-earnings ratio.

In other recent news, NextEra Energy has been in the spotlight due to several important developments. The company announced a rate settlement through its subsidiary, Florida Power & Light, which reduces the utility’s original revenue request by approximately 30%, keeping residential bills below national averages. This settlement awaits approval from the Florida Public Service Commission and includes a modest increase in customer bills starting in January 2026. On the financial front, NextEra Energy completed the remarketing of $2 billion in Series M Debentures, resetting the interest rate to 4.685% annually.

Analyst activity around NextEra Energy has also been notable. Mizuho raised its price target for the company to $78 while maintaining a Neutral rating, following details of the rate settlement. Melius Research initiated coverage with a Buy rating and a price target of $77, citing the company’s leadership in renewable energy. UBS reiterated its Buy rating and maintained an $84 price target, expressing confidence in NextEra Energy’s long-term earnings growth potential. These developments highlight the company’s ongoing efforts in financial management and strategic planning.

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