Morgan Stanley Keeps Bullish View on NextEra Energy (NEE) Despite PT Cut

NextEra Energy, Inc. (NYSE:NEE) is included among the Dividend Stock Portfolio For Retirement: Top 12 Stock Picks.

On May 21, Morgan Stanley lowered its price recommendation on NextEra Energy, Inc. (NYSE:NEE) to $111 from $115. It reiterated an Overweight rating on the shares. The firm said it updated its price targets for Regulated and Diversified Utilities and independent power producers across North America for April. The analyst also noted that utility stocks underperformed the S&P during the month.

On May 20, Reuters reported that NextEra Energy agreed to acquire US oil and gas investment firm Caliber Resource Partners for $1.3 billion. Reuters also reported that the company formed a joint venture with Caliber’s private equity backer, Quantum Capital Group, to manage NextEra’s U.S. shale assets, citing four sources familiar with the matter.

The acquisition gives NextEra greater access to US natural gas supplies. The report came only days after the company announced a $67 billion merger deal with Dominion Energy that would create one of the world’s largest electric utilities and major suppliers of power to data centers. The growing demand for data centers is widely expected to increase the need for natural gas used in power generation.

According to Reuters, a subsidiary of NextEra Energy will take control of Caliber’s assets, which include passive stakes in oil and gas producing assets across several onshore U.S. shale basins. These non-operated interests allow investors to receive a share of revenue from hydrocarbon sales by contributing part of the drilling costs without directly participating in drilling operations.

NextEra Energy, Inc. (NYSE:NEE) is an electric power and energy infrastructure company. It operates through subsidiaries including NextEra Energy Resources, LLC, NextEra Energy Transmission, LLC, and Florida Power & Light Company.

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