Oppenheimer Downgrades NextEra Energy Partners (NEP) to Perform Following Estimate Reductions

Oppenheimer analyst Colin W. Rusch downgraded NextEra Energy Partners (NYSE: NEP) from Outperform to Perform.

The analyst ocmments "NEP cut its dividend growth outlook through 2026 and lowered YE23 run-rate expectations while stating it would not need new growth equity until 2027. We positively viewed recent developments, including gas pipeline divestiture plans and pausing IDR fees to NEE, as value-enhancing for shareholders. The decisions announced today appear reactive to the current capital markets environment while aligning NEP's DPS growth rate closer to yieldco peers. With higher PPA rates for renewables, a favorable policy backdrop, and visibility to 58GW of sponsor opportunities through 2026, we continue to see large future growth opportunities for the platform, but believe NEP needs to execute on accretive growth, key divestitures and 2024/25 debt refinancing. We lower estimates and downgrade shares to Perform (from Outperform)."

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 $46.90 yesterday.

You May Also Be Interested In

• GLJ Research Downgrades Fluence Energy Inc. (FLNC) to Hold
• Deutsche Bank Upgrades Target Hospitality (TH) to Buy
• Okta, Inc (OKTA) PT Raised to $170 at Cantor Fitzgerald Ahead of Q2 Results