Jefferies Raises Price Target on NextEra Energy, Inc. (NEE) to $65

April 26, 2012 11:25 AM EDT
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Price: $118.86 -0.35%

Rating Summary:
    14 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Jefferies analysts raised their price target on NextEra Energy (NYSE: NEE) from $63 to $65.

Management at the electricity services company is anticipating an average growth rate of 5 to 7 percent through 2014, which translates into 2014 earning guidance of $5.05-$5.65 compared to 2012 guidance of $4.35-$4.65.

In a company note, a Jefferies analysts stated, “Our sum-of-the-parts valuation applies a P/E multiple to the utility segment of 14.0x 2014E earnings and EV/EBITDA multiples to non-wind/solar generation at NextEra Energy Resources (NER). Our projected EBITDA reflects forward gas prices, market heat rates, and hedges. We value the wind portfolio based on DCF and our assumed allocation of 70% of parent and NER debt. We have also applied EV/EBITDA multiples of 5.0x to the supply business / marketing & trading, 6.0x to gas infrastructure, a 10% premium P/E T&D multiple to CREZ, and valued new solar based on DCF.”

Jefferies has a BUY rating on NextEra Energy (NYSE: NEE) with a price target of $65.00

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

Shares of NextEra Energy closed at $64.41 yesterday.

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