Morgan Stanley Downgrades NextEra Energy Partners (NEP) to Underweight

Morgan Stanley analyst Robert Kad downgraded NextEra Energy Partners (NYSE: NEP) from Equalweight to Underweight with a price target of $20.00 (from $31.00).

The analyst comments: "We are lowering our rating to Underweight (from Equal-weight); our new price target of $20 (down from $31) implies -10.7% one-year total return, including a 14.5% forward distribution yield. We expect questions around funding (both buyout obligations on its convertible equity portfolio financings and new growth investment) and related distribution cut risk to remain overhangs on the stock, with the possibility that clarity could still be several quarters off. We now model a -90% distribution cut in 1q27."

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 $26.35 yesterday.

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