Wunderlich Securities Increases PT on NextEra Energy to $64, Maintains Buy (NEE)

Wunderlich Securities increased its price target on NextEra Energy NEE from $60 to $64. At the same time, Wunderlich reiterated its Buy rating on NextEra. In a research report published today, Wunderlich states, "We are increasing our target price on NextEra Energy (NEE) to $64 from $60 and maintaining our Buy rating. NEE currently trades at 12.0 and 11.2 times our 2012 and 2013 EPS estimates, respectively. With peers trading closer to 13.1x 2013 EPS estimates, NEE is trading at over a 10% discount to comparables. Our discounted cash flow (DCF) model and sum-of-the-parts analysis support a valuation range of $63-$65. Though cash flow-based methodologies reflect the lower end of the range, that is primarily due to the lower cash flow coming from the utility as a result of the regulatory settlement. We expect NEE to file a rate case in Florida in 2012. Cash flow in 2013 should improve significantly." On Monday, NextEra lost 0.97% of its value to close the day at $58.07.