NextEra Energy's Long Term Prospects Solid, Says Wunderlich (FPL)
June 10, 2010 7:09 AM
Wunderlich Securities analysts Ian Fleischer and James Dobson reiterated their Buy rating for NextEra Energy (NYSE: FPL).
FPL's long-term strategy and outlook are solid, and earnings growth remains in the 5-7% range.
The analysts said, "The stock has underperformed the sector since late May, ostensibly driven by factors that the company readily discussed at its analyst meeting in early May: weak wind development conditions and small investments in unconventional natural gas plays. Though earnings in 2011 are expected to improve over 2010, we admit the growth is below our target. However, we believe the stock is discounting a longer cycle of regulatory, wind development, and earnings improvement."
FPL's ticker is expected to change to NEE later this month.
Wunderlich's 12-18 month price target is $55.00. FPL is currently trading at $48.40.
