CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $8 to $64, 18.8x our 2024 EPS estimate (down $0.01 to $3.40; 2023 estimate remains $3.12), a premium to peers based on higher earnings and dividend growth potential, though a discount to NEE’s 10-year average of 21.8x given challenges for renewables developers in the higher interest rate environment. Despite somewhat weaker three-year consensus EPS growth expectations (closer to 8% CAGR vs. 9% previously), we think today’s price action (shares up about 5%) reflects NEE’s decision to leave overall guidance unchanged despite the recent announcement of a lower distribution growth trajectory for NextEra Energy Partners (NEP 26 NR), which falls under the NEER subsidiary. NEE reported Q3 EPS of $0.94 vs. $0.85, $0.06 above consensus as returns on capital investments offset higher interest expense. Shares recently yielded 3.8%, below peers but significantly above NEE’s historical yield given recent weakness (shares down about 35% YTD). We maintain our Buy opinion.