RBC Capital Downgrades NextEra Energy Partners (NEP) to Sector Perform

RBC Capital analyst Shelby Tucker downgraded NextEra Energy Partners (NYSE: NEP) from Outperform to Sector Perform with a price target of $30.00 (from $38.00).

The analyst comments "We see a challenging road ahead for NEP, with insufficient growth from wind repowerings and the looming ~$3.7B CEPF liabilities post-2026. Ultimately, we believe the model will not be able to sustain a long-term 5-8% dividend growth, forcing NEP to evaluate a dividend cut. Therefore, we downgrade shares to a Sector Perform rating (from Outperform) and revise our price target to $30 (from $38). We are adding a Speculative Risk rating to reflect the risk of a dividend cut."

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 $27.64 yesterday.

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