Could NextEra Energy’s Upside Potential Be a Light in the Darkness?
NextEra Energy’s price targets
Utility giant NextEra Energy (NEE) appears to have a brighter potential upside for the next year than its peers. According to Wall Street analysts’ estimates, NextEra Energy has a price target of $137.47, as compared to its current market price of $129.54. This figure implies an estimated gain of more than 6%.
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Of the 18 analysts tracking NextEra Energy, five recommend it as a “strong buy,” while 11 recommend it as a “buy,” and two recommend it as a “hold.”
Peer price targets
By comparison, peers Duke Energy (DUK) and Southern Company (SO) have relatively dull upside potentials. The consensus Wall Street analyst price target for Southern Company (SO) is $50.76. Its current market price is $49.78, implying a rise of 2% over the next year. The price target for Duke Energy (DUK) is $80.89. Its current market price is $82.99, implying a fall of nearly 2.5% over the next year.
Notably, many utilities are currently offering dull upsides for the next year, as seen in their analysts’ price targets, though some S&P 500 utilities (XLU) are still offering handsome upsides from their current levels.
For more on this industry, check out Market Realist’s series These S&P 500 Utilities Offer Big Upsides after the Rate Hike.