Strouse还认为，潜在的dropdown公告，加上DPU重置，可能会成为该股的催化剂，并提高2026财年及以后的增长可见度。J.P. Morgan upgraded the rating of NextEra Partners from “reduced holdings” to “neutral,” with a target price of $22.
The Zhitong Finance App learned that NextEra Energy Partners (NEP.US), a subsidiary of New Era Energy (NEE.US), the largest renewable energy power company in North America, once fell more than 3% on Thursday, continuing the 16% decline from the previous trading day because the company's previously announced third-quarter results fell far short of expectations. However, J.P. Morgan believes that the stock has little room to decline after a sharp decline, and indicated that New Era Energy is currently more likely to continue to own NextEra Partners, so it raised the rating of NextEra Partners from “reduced holdings” to “neutral,” with a target price of $22.
Mark Strouse of J.P. Morgan said that short-term risk still revolves around NextEra Partners' long-term convertible portfolio financing (CEPF) obligations and its ability to provide incremental financing for potential “dropdown (new era energy building clean energy assets and then selling all or part of them to NextEra Partners)” acquisitions. At the same time, the analyst also saw that “NextEra Partners can stabilize its capital costs, expand its investment portfolio, and possibly reset it all at once Cash available for distribution (CAFD) and allocation per unit (DPU) to meet CEPF's obligations re-establish a virtuous cycle”.
Strouse also believes that a potential dropdown announcement, along with the DPU reset, could be a catalyst for the stock and increase growth visibility for the 2026 fiscal year and beyond.
