Why This NextEra Energy Analyst Is No Longer Bullish
Portfolio Pulse from Priya Nigam
NextEra Energy Partners (NEP) shares dropped significantly after RBC Capital Markets downgraded the stock from Outperform to Sector Perform and reduced the price target from $38 to $30. The downgrade is due to concerns about insufficient growth from wind repowering and looming $3.7B CEPF liabilities post-2026. Analyst Shelby Tucker suggests a potential dividend cut to manage these financial challenges.
July 01, 2024 | 4:02 pm
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NextEra Energy Partners (NEP) shares fell by 5.35% after RBC Capital Markets downgraded the stock from Outperform to Sector Perform and reduced the price target from $38 to $30. The downgrade is due to concerns about insufficient growth from wind repowering and looming $3.7B CEPF liabilities post-2026. Analyst Shelby Tucker suggests a potential dividend cut to manage these financial challenges.
The downgrade from RBC Capital Markets and the reduction in price target are significant negative signals for investors. The concerns about insufficient growth and looming liabilities post-2026 add to the bearish sentiment. The potential for a dividend cut further exacerbates the negative outlook, leading to a likely short-term decline in NEP's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100