UPDATE: Morgan Stanley Downgrades NextEra Energy to Equal-Weight on Valuation

Morgan Stanley downgraded NextEra Energy

from Overweight to Equal-weight and raised the price target from $68.50 to $73.50. Morgan Stanley noted, "Despite NEE combining a low-risk utility with a well hedged merchant power business, we are moving to Equal-weight. Our change is driven by valuation, since shares outperformed the sector by 20%+ since 2012, leaving shares more fully valued and at a premium versus peers." NextEra Energy closed at $71.31 on Wednesday.