DBS analyst Elizabelle Pang reiterated a Hold rating on NextEra Energy (NEE – Research Report) today and set a price target of $75.00.
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Elizabelle Pang’s rating is based on several considerations surrounding NextEra Energy’s current market position and future prospects. Despite achieving significant milestones in FY24, such as new frameworks for gas-fired capacity and a bid for nuclear plant restart, the company faces policy challenges that could affect investor sentiment and introduce volatility in its share price. Therefore, the recommendation is to maintain a Hold rating with a revised target price of USD 75.
NextEra Energy stands out due to its robust utility and renewable segments, with the latter poised for substantial growth as renewable capacity is expected to double by 2025. While the company has exhibited a strong track record and operational efficiency, including an impressive EPS growth, the potential impacts of rising interest rates and supply chain disruptions could hinder expansion plans. Furthermore, policy headwinds under the new U.S. administration contribute to an uncertain near-term outlook, justifying the Hold rating at this juncture.
Pang covers the Consumer Cyclical sector, focusing on stocks such as General Motors, Tesla, and Ford Motor. According to TipRanks, Pang has an average return of -2.1% and a 37.50% success rate on recommended stocks.
In another report released on January 29, Evercore ISI also maintained a Hold rating on the stock with a $77.00 price target.