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Goldman Sachs Downgrades NextEra Energy Partners (NEP) to Neutral, "lower cost of capital appears priced in"

March 29, 2017 3:01 AM EDT
Get Alerts NEP Hot Sheet
Price: $27.00 -3.26%

Rating Summary:
    13 Buy, 9 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Goldman Sachs downgraded NextEra Energy Partners (NYSE: NEP) from Buy to Neutral, maintains a price target of $34.00.

Analyst Michael Lapides comments "Although we continue to view the YieldCo as best-in-class given (1) an unmatched runway of visible growth opportunities from its sponsor (NEE; Not Rated) well into the 2020s, (2) attractive cost of capital at these stock levels, and (3) robust DPS growth through the end of this decade, we now view these positives as priced in. YTD NEP outperformed both the S&P and XLU by 23%/21%, respectively and by 14%/13% since being added to the Buy List on October 18, 2015, with most of the outperformance following NEP’s 1Q2017 earnings call where it extended DPS growth guidance and cut the IDR burden."

He keeps his EPS estimates unchanged at $1.51 for FY 2017, $1.85 for FY 2018, and $2.08 for FY 2019.

For an analyst ratings summary and ratings history on NextEra Energy Partners click here. For more ratings news on NextEra Energy Partners click here.

Shares of NextEra Energy Partners closed at $33.15 yesterday.



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