BofA cuts NextEra Energy stock price target on valuation multiples

BofA cuts NextEra Energy stock price target on valuation multiples

Gold off session lows as US-Iran conflict boosts safe-haven demand Investing.com - BofA Securities lowered its price target on NextEra Energy stock to $93 from $95 while maintaining a Neutral rating on the shares. The stock currently trades at $87.96 with a market capitalization of $183.5 billion, though InvestingPro analysis suggests the stock is overvalued relative to its Fair Value. The firm expects NextEra Energy (NYSE:NEE) to report second-quarter 2026 earnings per share of $1.02 compared with $1.05 in the prior-year quarter.

The analyst cited continued rate base growth and improved wind resources, more than offset by higher interest expense, share dilution, and nuclear outage costs. According to InvestingPro Tips, the company has raised its dividend for 30 consecutive years, maintaining a current yield of 2.83%—one of 8+ exclusive tips available to subscribers. BofA Securities updated its earnings estimates for 2026 through 2028 to $4.00, $4.39, and $4.82 per share, compared with previous estimates of $4.00, $4.37, and $4.74.

The price target reduction reflects updated peer group price-to-earnings and EBITDA multiples. The firm said investors will likely focus on execution against NextEra Energy’s capital plan, the pace of infrastructure buildout, and steps toward definitive agreements tied to Japanese government-backed gas generation during the earnings call. NextEra Energy operates as a utility holding company with regulated electricity generation and distribution operations in Florida and a renewable energy portfolio across North America.

In other recent news, NextEra Energy has been actively engaged in several significant developments. The company recently completed a $3.75 billion debt offering through its subsidiary, NextEra Energy Capital Holdings. This offering includes three tranches of junior subordinated debentures, with maturities extending to 2056 and 2066.

Additionally, NextEra Energy has filed financial statements with the Securities and Exchange Commission as part of its ongoing acquisition of Dominion Energy. These filings include both audited and unaudited financial statements, reflecting the merger’s progress. Analysts have shown interest in NextEra Energy’s activities, with UBS reiterating a Buy rating and a $105.00 price target, expressing confidence in the company’s execution capabilities.

Bernstein has also initiated coverage with an outperform rating and a $107.00 price target, noting the company’s dual business model. Furthermore, NextEra Energy declared a quarterly dividend of $0.6232 per share, payable to shareholders in June 2026. These developments indicate a period of strategic financial maneuvers and analyst attention for NextEra Energy.