On Tuesday, BofA Securities maintained a Neutral rating on NextEra Energy (NYSE:NEE) while raising the stock's price target from $61.00 to $67.00. The adjustment comes as the firm revises its earnings per share (EPS) estimates for the years 2024 and 2025 and introduces a new estimate for 2026.
The revised EPS estimates for NextEra Energy are now set at $3.37 for 2024 and $3.66 for 2025, slightly lower than the previous forecasts of $3.40 and $3.69 respectively. Additionally, BofA Securities has provided a first-time EPS estimate for 2026 at $3.98 per share. These projections are based on updated financial forecasts and fall within the guidance ranges provided by NextEra Energy.
For the first quarter of 2024, the firm anticipates an EPS of $0.73, which is a decline from the $0.84 reported in the same quarter of the previous year. This forecast also sits marginally below the consensus estimate of $0.76 per share.
The increase in price target to $67.00 reflects a revised group average price-to-earnings (P/E) multiple and the transition to a valuation year of 2026. The firm believes that NextEra Energy's premium valuation is justified by its leading business mix, growth prospects, and proven track record.
InvestingPro Insights
Amidst the financial analysis from BofA Securities, real-time data from InvestingPro provides additional context for investors considering NextEra Energy (NYSE:NEE). The company's consistent performance is highlighted by a dividend that has been raised for 28 consecutive years, signaling a strong commitment to shareholder returns. This is complemented by the fact that analysts have recently revised their earnings upward for the upcoming period, suggesting confidence in the company's financial prospects.
With a Market Cap of approximately $136.09 billion and a P/E Ratio of 18.06, NextEra Energy trades at a valuation that reflects its robust fundamentals. The company's PEG Ratio, which stands at 0.26, indicates a favorable relation between its price and earnings growth, making it an attractive option for value-oriented investors. The data also shows a substantial Revenue Growth of 34.16% in the last twelve months as of Q4 2023, which may support the firm's positive outlook on the company's growth prospects.
For those looking to delve deeper into NextEra Energy's financials and future outlook, InvestingPro offers further InvestingPro Tips and metrics. There are additional tips available, including insights on the company's profitability and stock performance over various time frames. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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