Mizuho has revised its price target for NextEra Energy (NEE, Financial), lowering it from $73 to $69, while maintaining a Neutral rating on the stock. Despite the adjustment, the firm remains optimistic about NextEra Energy's earnings growth, which is expected to align with the higher end of its 6% to 8% guidance range.
The decision to adjust the price target was influenced by prevailing market multiples, as noted by the analysts in their latest report. NextEra Energy's performance continues to be closely watched, with the revised target reflecting the firm's assessment of the current market dynamics and potential future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for NextEra Energy Inc (NEE, Financial) is $82.83 with a high estimate of $103.00 and a low estimate of $52.00. The average target implies an upside of 23.13% from the current price of $67.27. More detailed estimate data can be found on the NextEra Energy Inc (NEE) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, NextEra Energy Inc's (NEE, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NextEra Energy Inc (NEE, Financial) in one year is $87.57, suggesting a upside of 30.18% from the current price of $67.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NextEra Energy Inc (NEE) Summary page.
NEE Key Business Developments
Release Date: April 23, 2025
- Adjusted Earnings Per Share: Increased by nearly 9% year over year.
- FPL Earnings Per Share: Increased by $0.07 year over year.
- FPL Regulatory Capital Employed Growth: Approximately 8.1% year over year.
- FPL Capital Expenditures: Approximately $2.4 billion for the quarter.
- FPL Full Year Capital Investments: Expected to be between $8 billion and $8.8 billion.
- FPL Return on Equity: Approximately 11.6% for regulatory purposes.
- FPL Reserve Amortization: Utilized approximately $622 million, leaving a balance of roughly $274 million.
- FPL New Solar Capacity: 894 megawatts placed into service.
- FPL Retail Sales Growth: Increased by approximately 1.8% year over year.
- Energy Resources Adjusted Earnings Growth: Nearly 10% year over year.
- Energy Resources New Investments Contribution: Increased $0.12 per share year over year.
- Energy Resources Backlog: Totals roughly 28 gigawatts.
- Energy Resources New Renewables and Storage Originations: Approximately 3.2 gigawatts added to the backlog.
- Interest Rate Hedges: Nearly $37 billion in place, with a hedged risk-free rate at roughly 3.9%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NextEra Energy Inc (NEE, Financial) reported a nearly 9% year-over-year increase in adjusted earnings per share, indicating strong financial and operational performance.
- Florida Power & Light (FPL) placed into service 894 megawatts of new solar, contributing to a total of over 7.9 gigawatts of solar capacity, the largest utility solar portfolio in the U.S.
- Energy Resources originated approximately 3.2 gigawatts of new renewables and storage projects, marking strong demand for these technologies.
- NextEra Energy Inc (NEE) has diversified its supply chain, reducing tariff exposure to less than $150 million on over $75 billion in expected capital spend.
- The company has nearly $37 billion of interest rate hedges in place, allowing flexible management of interest rate exposure over the coming years.
Negative Points
- The cost to build gas-fired plants has tripled in recent years, posing challenges for meeting future energy demand.
- There are significant challenges in reestablishing a skilled workforce for building complex power plants, leading to increased costs and construction delays.
- Gas turbines are in short supply and high demand, contributing to higher costs for gas-fired generation.
- Nuclear technology, such as SMR, is still 10 years away from being ready at scale and comes at a higher price point than gas-fired generation.
- There is a potential risk of project slippage beyond the current plan into 2028 and beyond due to the uncertain macro environment and complex contract discussions.
