NextEra Energy Partners price target lowered to $27 from $28 at Jefferies

Jefferies lowered the firm’s price target on NextEra Energy Partners (NEP) to $27 from $28 and keeps a Buy rating on the shares. Along with Q3 earnings, management confirmed that it will be giving an update on NextEra Energy Partners’ cash deployment strategy by Q4 and “heavily implied a dividend cut in the near term,” the analyst tells investors in a post-earnings note. The stock traded down subsequently, not so much on the news, but more so in anticipation of how large of a cut NEP could take, argues the analyst, who is “not concerned” and views a potential cut as necessary to address sizable CEPF buyouts and as an opportunity to rerate dividend yield to comparable levels with peers.