Jefferies has raised its price target on NextEra Energy to US$88 from US$85, citing improved visibility on earnings growth and stronger confidence in the utility giant’s long-term clean energy strategy.
In a note to investors, the investment bank maintained its positive outlook on the company, pointing to NextEra’s dominant position in renewable energy generation and its regulated utility operations as key drivers of stable cash flows. Analysts highlighted that easing interest rate pressures and a more favorable financing environment could support capital-intensive renewable projects going forward.
NextEra Energy, the parent company of Florida Power & Light, has continued to benefit from consistent demand growth, disciplined cost management, and its large-scale investments in wind, solar, and battery storage. Jefferies noted that the company’s backlog of renewable projects and contracted assets provides earnings resilience despite broader volatility in the utilities sector.
The firm also flagged improved regulatory clarity and execution on transmission upgrades as factors supporting the higher valuation. While challenges remain, including ongoing capital expenditure requirements, Jefferies said NextEra’s balance sheet strength and scale give it an advantage over peers.
Shares of NextEra Energy have been closely watched by investors seeking a blend of income stability and exposure to the energy transition, with the revised target reflecting continued confidence in the company’s long-term growth trajectory.
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