NextEra Energy (NEE) PT Raised to $93 at Evercore ISI
Evercore ISI analyst Nicholas Amicucci raised the price target on NextEra Energy (NYSE: NEE) to $93.00 (from $92.00) while maintaining a Outperform rating.
The analyst comments "Power Solutions Capabilities Take Center Stage. NEE shares have traded off following the call, which we view as some relatively healthy profit taking with shares up ~20% over the last month. Commentary during the call was centered around the recently announced recommissioning of Duane Arnold (HERE) and its associated 25-year PPA with Google. Importantly, NextEra management continued to lean into the value the company creates and is able to provide through the entirety of its portfolio, highlighting the complementary nature of its renewable assets with more reliable baseload assets. As we outlined within our recent initiation (HERE), we continue to view NEE’s ability to provide a broad spectrum of generation assets as a true differentiator from both a speed to power and reliability perspective. The company’s ability to not only provide the needed baseload assets (through its GEV agreement) but also to provide reliable redundancy (energy storage) and access to fuel through its ability to construct both greenfield long-haul pipelines and laterals, place it in a unique position to address most of the potential concerns for large load customers. Energy Storage backlog increased ~1.9GW in the quarter representing >60% of the backlog increase and remains an underappreciated growth angle within the broader NextEra story, in our view. We continue to view energy storage as a key complement to baseload generation regardless of generation type given its ability to instantaneously dispatch power when needed, a feature that is extremely value additive for AI training data centers and provides a seamless levelization mechanism for the associated generation asset. We expect management to opine further on the company’s power solutions-based approach and the growth potential surrounding its complementary renewables portfolio during its upcoming Investor Day on December 8th . Overall, we remain constructive given FPL’s durable capex-to-earnings flywheel, NEER’s accelerating storage mix and strong customer-supply franchise, and now-tangible nuclear optionality - all underpinned by management’s confidence to perform at or near the high end of guidance through 2027. We reiterate our Outperform rating and increase our price target to $93 (from $92)."