According to the Zhitong Finance APP, NextEra Energy, the largest renewable energy electrical utilities company in North America (NEE.US), a subsidiary of NextEra Energy Partners (NEP.US), fell by more than 3% on Thursday, continuing the 16% decline from the previous trading day, due to the third-quarter performance announced by the company being well below expectations. However, JPMorgan believes that the stock has almost no downside potential after a significant decline, and points out that NextEra Energy is more likely to continue to own NextEra Partners. Therefore, they raised the rating of NextEra Partners from "shareholding" to "neutral", with a target price of $22.

JPMorgan's Mark Strouse stated that short-term risks still revolve around NextEra Partners' Long-Term Convertible Equity Portfolio Financing (CEPF) obligations and its ability to provide incremental financing for potential "dropdown" acquisitions (referring to NextEra Energy setting up clean energy assets and then selling some or all of them to NextEra Partners). At the same time, the analyst also sees that NextEra Partners can stabilize its cost of capital, expand its investment portfolio, and potentially reset cash available for distribution (CAFD) and distributions per unit (DPU) in a one-time reset to meet CEPF obligations and then establish a benign cycle.

Strouse believes that the potential dropdown announcement, along with DPU reset, could serve as a catalyst for the stock and increase visibility of growth in the 2026 fiscal year and beyond.