NextEra Energy, Inc. (NYSE:NEE) is one of the 8 Best Climate Change Stocks to Buy According to Analysts. On May 19, TheFly reported that Morgan Stanley increased its price target on NextEra to $115 from $107 while maintaining an Overweight rating on the stock following the company’s announcement of an all-stock deal with Dominion Energy to create a utility and energy infrastructure company with an enterprise value of over $400 billion.
Morgan Stanley described the deal as “attractive overall”, highlighting that it brings accelerated growth prospects in various aspects, such as data centers and cleaner earnings power.
On May 18, NextEra announced that it has entered into a definitive agreement to combine with Dominion Energy in an all-stock transaction, emphasizing that the transaction will create the largest regulated electric utility business. It added that the combined company will be more than 80% regulated and serve approximately 10 million utility customer accounts across the states of Florida, Virginia, North Carolina, and South Carolina. Additionally, the combined firm will own 110 gigawatts (GW) of generation across a broad mix of energy sources.
As part of the merger, Dominion Energy shareholders will receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each share of Dominion Energy they own at the close of the transaction. This will result in NextEra Energy and Dominion Energy shareholders owning approximately 74.5% and 25.5% of the combined company, respectively.
In addition, Dominion Energy shareholders will continue to receive Dominion’s current quarterly dividend through closing, plus a one-time cash payment of $360 million at closing of the transaction.
Of the 26 analyst ratings compiled by CNN, 62% rated NextEra Buy, while 35% rated it Hold. The stock has a median price target of $101.72, a 12.95% increase from the current price of $90.06.
NextEra Energy, Inc. (NYSE:NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. It owns Florida Power & Light Company, America’s largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. The company also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America’s growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.
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