NextEra Energy (NEE) CEO John Ketchum recently revealed that the company is interested in reopening its former nuclear power plant in Iowa. On the company’s Q3 earnings call, Ketchum highlighted the possibility of NextEra restarting the Duane Arnold Energy Center, formerly Iowa’s only nuclear power plant. This comes as tech companies are starting to bet on the future of nuclear energy.
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What’s Happening with NEE Stock?
NextEra Energy stock rose today despite reporting mixed earnings for Q3. This suggests that the market isn’t worried about this energy sector leader’s future. NEE stock has spent the past year making steady progress, demonstrating strength and stability with gains of 60% amid market volatility.
Now the company may be facing another positive growth catalyst if it reopens the nuclear plant. During the recent earnings call, Ketchum stated that NextEra is “[Very] busy looking at Duane Arnold. We’re very interested in recommissioning the plant. We’re doing all the things right now that you would expect us to do.”
He added that there is strong interest from “data center customers” in the potential nuclear plant reopening, though no dollar amounts were provided. But the timing of this update is highly strategic. With interest in nuclear technology as a potential source of energy rising steadily, reopening the facility could be an excellent growth-driving catalyst for NEE stock.
Is NextEra Energy Stock a Strong Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NEE stock based on five Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 60% rally in its share price over the past year, the average NEE price target of $88.22 represents a 3.84% change from the last price of $84.96.
That said, some analysts are becoming more bullish on NextEra Energy. Morgan Stanley analyst David Arcaro recently maintained a Buy rating and a $95 price target, implying upside potential of 12%. If NEE stock continues to perform well, Wall Street sentiment will likely continue to shift.
