NextEra Energy Partners LP (NEP) witnessed a significant 12% plummet in its stock price during Wednesday's trading session, amid broader market sell-off. The sharp decline was triggered by the company's recent announcement to reposition its business, focusing on funding renewable energy investments rather than raising capital.
This strategic shift led to concerns among analysts and investors, prompting several brokerage firms to downgrade their price targets and ratings for NEP. Wells Fargo slashed its price target by a substantial 60% to $13, citing potential challenges in attracting a new shareholder base after the company suspended its distribution.
Scotiabank also lowered its price target to $12 and expressed skepticism, struggling to craft a bullish thesis for NEP due to its lack of yield, negative EBITDA and free cash flow growth projections for the next two years, and a flat outlook for 2026-2030. JPMorgan followed suit, reducing its price target to $13 from $20, reflecting the impact of NEP's repositioning on its future prospects.
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