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NextEra Energy’s 3Q15: Analyst Recommendations and Credit Ratings

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Brokerage ratings on NextEra Energy

NextEra Energy (NEE) has a Wall Street analyst consensus rating of “strong buy.” Of surveyed analysts, 21 have given NextEra it a “buy” rating and five a “hold.” No analyst has given a “sell” rating to NEE. The average 12-month price target is $117.50 against a market price of $104.56 as of October 25, implying a potential return of 12.4%.

On October 21, RBC Capital Markets (RBC) gave NEE an “outperform” rating with a price target of $128 per share, implying an expected one-year price return of 22.4% over October 25’s close of $104.56.

On October 19, Goldman Sachs (GS) gave a “Buy/Neutral” rating to NEE with a price target of $113, implying an expected return of 8.1%.

On October 15, Morgan Stanley (MS) gave an “Overweight/In-line” rating to NEE with a price target of $133, implying a 27.2% expected return over the next year.

NextEra Energy is one of analysts’ favorite stocks in the utility space.

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NextEra Energy’s credit rating

Moody’s has had a rating of Baa1/Stable on NextEra Energy since 2010. Standard and Poor’s has also given the company a rating of A-/Stable. For more information on what these ratings mean, please read our overview of credit ratings.

Bottom line

3Q15 earnings are expected to be good for NextEra Energy and most American power utilities. While 3Q15 expectations may drive valuations for utilities over the short term, the timing and pace of the Fed’s rate hikes will determine the attractiveness of the sector (XLU) over the medium term.

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