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

Published 29/08/2023, 18:51
© Reuters.  Upgraded To Outperform: Analyst On How NextEra Energy Partners Is Poised To Defy Capital Market Challenges
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Benzinga - by Lekha Gupta, Benzinga Editor.

Raymond James analyst Pavel Molchanov upgraded NextEra Energy Partners LP (NYSE: 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 (NYSE: 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.

Latest Ratings for NEP

Jan 2022Wells FargoMaintainsOverweight
Jan 2022Raymond JamesDowngradesOutperformMarket Perform
Nov 2021Morgan StanleyMaintainsEqual-Weight

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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