Maintaining Hold on NextEra Energy: Solid Performance but Limited Upside

Bank of America Securities analyst Paul Cole has maintained their neutral stance on NEE stock, giving a Hold rating on April 10.

Paul Cole has given his Hold rating due to a combination of factors including NextEra Energy’s first-quarter earnings and the company’s steady growth outlook. Although NextEra Energy exceeded both Bank of America’s and consensus earnings per share (EPS) expectations for Q1’24, posting $0.91 compared to an anticipated $0.76, the company’s financial performance was solid yet anticipated. NextEra Energy experienced favorable earnings driven by new investments at both Florida Power & Light (FPL) and NextEra Energy Resources (NEER), which offset various minor headwinds.

Despite the positive earnings report, NextEra Energy maintained its EPS guidance for 2024 and its expectations for EPS growth and dividend growth rates unchanged. The unchanged outlook, coupled with the company’s strong business mix and performance record, suggests that the current stock price already reflects these positive aspects. Therefore, Cole believes there is limited upside potential in the near term, justifying the Neutral rating with a price objective of $67 per share, only slightly above the current price of $65.31.

According to TipRanks, Cole is a 2-star analyst with an average return of 1.0% and a 100.00% success rate. Cole covers the Utilities sector, focusing on stocks such as Ameren, Consolidated Edison, and Dominion Energy.

In another report released on April 10, Barclays also initiated coverage with a Hold rating on the stock with a $66.00 price target.

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NextEra Energy (NEE) Company Description:

NextEra Energy, Inc. is an energy company and is one of the largest electric power generators in the United States. Through its Florida Power & Light Company (FPL) business, the company provides clean, reliable and affordable electricity across Florida. NextEra Energy also owns a clean energy business, NextEra Energy Resources (NEER), which is the world’s largest generator of renewable energy from wind and sun. The company was founded in 1984 and based in Juno Beach, Florida.