Guggenheim downgrades NextEra Energy Partners after ‘lackluster’ Q3

Guggenheim analyst Shahriar Pourreza downgraded NextEra Energy Partners (NEP) to Neutral from Buy with a price target of $22, down from $37. The company reported “lackluster” Q3 earnings and the alternatives for convertible equity portfolio financing resolution “have clearly narrowed,” the analyst tells investors in a research note. The firm says the lack of capital market reprieves leaves NextEra Energy Partners disadvantaged as a yield-tied stock. Management commentary around a lack of private market backstops and public equity valuation removes opportunities for accretive growth financing, adds Guggenheim.