Upgraded To Outperform: Analyst On How NextEra Energy Partners Is Poised To Defy Capital Market Challenges

Raymond James analyst Pavel Molchanov upgraded NextEra Energy Partners LP NEP to Outperform from Market Perform, with a price target of $60.

The analyst is bullish on NEP's blue-chip status and favorable cost of capital, which offers it an edge amid challenging capital and credit markets. 

Although the analyst believes the macro interest rate environment will continue to pressure the company, the analyst thinks the stock is 'not priced for perfection.'

The rating upgrade also aligns with the analyst's bullish stance on the company's Canadian peers.

Molchanov thinks NEP's consolidation into the parent company, NextEra Energy Inc NEE, could boost its share price, although he sees it as a 'a plausible scenario'.

The analyst estimates revenue and operating EPU of $1.498 billion and $2.02 for FY23 and $1.756 billion and $3.56 for FY24, respectively. 

Also Read: NextEra Energy Partners Gets A Windy Downgrade: Analyst Cautious Amid Equity Dilution & Funding Challenges

Price Action: NEP shares are trading higher by 5.47% at $51.28 on the last check Tuesday.