Another day, another set of disheartening losses emerged for energy stock Nextera Energy Partners (NYSE:NEP). Last week’s performance was bad enough, but now, we discover there’s not much suggesting that things will turn around. Nextera sunk better than 13.5% in Monday afternoon’s trading session, and the bottom may not yet be in sight.
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Nextera managed—as a result of its decline in today’s trading—to reach the lowest intraday price since December 2016. A combination of factors contributed to today’s open decline, starting with cuts to its estimates of future growth, which came as a surprise to most analysts and investors. Follow that up with its parent company, NextEra Energy (NYSE:NEE), deciding to go against plans to stage an asset dropdown, and the whole matter only snowballed.
That’s when things got worse. Nextera took a downgrade at Wells Fargo, with analyst Neil Kalton falling back from Buy to Hold. Kalton also devastated the price target, lowering it from $80 to its new $33. Kalton noted that Nextera has something of a fatal flaw that’s feeling particular pressure these days: its ability to raise equity and debt capital. Combine declining investor sentiment—as measured by the multi-day sell-off already in progress—with high-interest rates, and it’s a tailor-made disaster.
Is Nextera Energy Partners Stock a Good Buy?
Despite this, however, Nextera still has some analyst support. With six Buy ratings and six Holds, Nextera Energy Partners stock is considered a Moderate Buy. Further, Nextera Energy Partners stock also offers investors 88.29% upside potential thanks to its average price target of $48.09.
