Market Overview

Credit Suisse: NextEra Energy A 'Premier Solar And Wind Play'

Share:
Credit Suisse: NextEra Energy A 'Premier Solar And Wind Play'

NextEra Energy Inc (NYSE: NEE) managed to post better-than-expected third quarter profit  Oct. 26, but failed to beat the revenue consensus in the earnings report.

The Analyst

Credit Suisse's Michael Weinstein initiated coverage of NextEra Energy with an Outperform rating and $173 price target. 

The Thesis

NextEra Energy is a premier way to invest in a coming revolution for the electric generation industry, Weinstein said. (See Weinstein's track record here.)

Lower prices in renewables and battery storage could lead to the replacement of significant portions of conventional nuclear, coal, and gas-fueled electricity, the analyst said. 

NextEra's projected growth of 8 percent is above the peer average of 4-6 percent, Weinstein said. The growth is driven by "a combination of transmission and distribution upgrades (nearly half), cost-saving gas-fired generation efficiency upgrades, regulated solar under trackers and continued hurricane storm hardening work," the analyst said. 

Weinstein expects NextEra's dividend policy to be revisited by management in the first quarter of 2018, and said he sees the risk for his thesis in M&A, project execution, tax reform impacts on renewable growth, yield co structure and cost of capital.

The Price Action

The stock, which is trading flat Thursday, has gained around 32 percent year-to-date.

Related Links:

PG&E Removed From Goldman's Conviction List Amid California Wildfire Concerns

Jim Cramer Weighs In On NextEra Energy, American Outdoor And Kinder Morgan

Latest Ratings for NEE

DateFirmActionFromTo
Oct 2020Morgan StanleyMaintainsEqual-Weight
Oct 2020Credit SuisseMaintainsNeutral
Oct 2020Wells FargoMaintainsOverweight

View More Analyst Ratings for NEE
View the Latest Analyst Ratings

 

Related Articles (NEE)

View Comments and Join the Discussion!

Posted-In: Credit Suisse Michael WeinsteinAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
CMGDeutsche BankMaintains1,235.0
GMBarclaysMaintains40.0
FBarclaysMaintains9.0
AAPLPiper SandlerMaintains135.0
ALGNPiper SandlerMaintains500.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com