UPDATE: Citigroup Increases its PT on NextEra to $65

According to a research report this morning, Citigroup increases its PT on NextEra NEE from $60 to $65. Citigroup explained, “We continue to believe that NEE shares should trade at a lower effective earnings multiple relative to peers given that ~15-20% of GAAP earnings come from production tax credits with a finite life and therefore should not be valued as a terminal cash flow stream. The production tax credits for wind are set to expire at year end 2012, and we estimate a 2/3 probability that they are not extended beyond 2012.” NextEra closed yesterday at $65.61 as Citigroup reiterates its Neutral rating.