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Goldman Sachs analyst Carly Davenport reiterated a Buy rating for NextEra Energy, Inc. (NYSE:NEE) with a price forecast of $91 following the company’s first-quarter results reported on Wednesday.
The company reported adjusted EPS of $0.99, which exceeded the consensus estimate of $0.97. Meanwhile, sales reached $6.25 billion, falling short of the $6.80 billion estimate.
The company reaffirmed its adjusted EPS guidance at $3.45-$3.70 for 2025, (vs. analyst estimate of $3.67), $3.63-$4.00 for 2026 (vs. the $3.97 consensus estimate) and $3.85-$4.32 for 2027.
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The analyst writes that the most encouraging aspect of NextEra Energy’s call was the discussion surrounding its limited tariff exposure, which was a key concern for investors.
The company highlighted a domestic contract for battery storage supply, an area typically reliant on China, and indicated less than $150 million in tariff exposure at NextEra Energy Resources (NEER) within its $75 billion capital investment program through 2028, adds the analyst.
Given that policy uncertainty remains a key overhang, Davenport believes the commentary on minimal tariff exposure should ease investor concerns, although the future of the Inflation Reduction Act (IRA) remains a point of discussion.
The analyst updated their NextEra Energy model to reflect quarterly results, expense adjustments and revised FPL ROEs and tax rates.
Consequently, the analyst now sees EPS estimates of $3.72/$4.06/$4.50 for 2025-2027 (vs. $3.69/$4.04/$4.49 prior).
Price Action: NEE shares are down 1.11% at $66.62 at the last check Thursday.
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Latest Ratings for NEE
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Mar 2022 | Keybanc | Upgrades | Sector Weight | Overweight |
| Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
| Jan 2022 | Wells Fargo | Maintains | Overweight |
View More Analyst Ratings for NEE
View the Latest Analyst Ratings
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This article Tariff Relief for NextEra? Goldman Sachs Says Limited Exposure A Key Positive originally appeared on Benzinga.com
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