NextEra Energy Partners initiated with a Buy at Jefferies

Jefferies analyst Julien Dumoulin-Smith initiated coverage of NextEra Energy Partners with a Buy rating and $28 price target. The company owns about 10 GW of renewable capacity, but needs to address $3.75B of CEPF – convertible equity portfolio financing -buyouts over 2025-32, likely driving a 50% dividend cut, the analyst tells investors in a research note. The firm adds however that the market has already digested that scenario, while noting that the shares trade at a surprisingly high average dividend yield of 7.0% over the buyout period.