NextEra Energy Partners downgraded to Underweight at Morgan Stanley

Morgan Stanley downgraded NextEra Energy Partners to Underweight from Equal Weight with a price target of $20, down from $31. The analyst expects questions around funding, both from buyout obligations on the company’s convertible equity portfolio financings and new growth investment, as well as related distribution cut risk to remain overhangs on the stock, with the possibility that “clarity could still be several quarters off.” The firm now models a 90% distribution cut in Q1 of 2027 for NextEra Energy Partners.