Goldman Sachs analyst Carly Davenport reaffirmed a Buy rating on NextEra Energy, Inc. (NYSE:NEE) with a price forecast of $94, after the company's Development Day on March 18 in Florida.
The analyst writes that the company emphasized renewables as a key solution to current supply chain challenges and the higher costs of building gas power plants.
Notably, the analyst notes that management continues to face challenges in building new gas generation due to supply chain issues and rising costs.
The company targets power demand to grow by 55% by 2040, including 17% from data centers, 11% from residential and 11% from transportation, notes the analyst.
Following the event, Davenport says they are positive about the company's competitive advantages in generation and transmission development.
This, coupled with earnings growth, favorable regulatory jurisdiction exposure, and a solid balance sheet, should support a premium valuation, adds the analyst.
In January, the company reported fourth-quarter revenue of $5.385 billion, missing the estimate and adjusted EPS of $0.53, in line with the consensus.
Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities (NYSE:XLU) and Fidelity MSCI Utilities Index ETF (NYSE:FUTY).
Price Action: NEE shares are down 0.45% at $70.39 at the last check Wednesday.
- NVIDIA Introduces New AI And Robotics Tools At GTC, Powering The Future Of Technology
Image via Shutterstock.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
Comment(0)
Reason For Report