Oppenheimer Sticks to Their Buy Rating for Nextera Energy Partners (NEP)

By Ryan Adsit

In a report released today, Colin Rusch from Oppenheimer maintained a Buy rating on Nextera Energy Partners (NEPResearch Report), with a price target of $52. The company’s shares opened today at $46.17.

Rusch noted:

“While NEP results disappointed on lower than expected wind resource in the quarter, the company announced another sizable transaction financed with a convertible note at what we believe are attractive terms (~1% coupon, 8.3% total return, with buyout in 3.5-6 years). We continue to believe NEP’s access to capital is a key strategic advantage in working to capture an outsized portion of value from its growing portfolio and are encouraged to see NEP improve terms on this note versus its last convertible note used for acquisitions. With NEE’s renewable portfolio still sufficiently robust to support multi-year growth at NEP, we continue to see NEP as a core holding in our coverage universe. We remain constructive as we tweak numbers for 1Q:19 results.”

According to TipRanks.com, Rusch is a 5-star analyst with an average return of 11.5% and a 51.9% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as American Superconductor Corporation, Capstone Turbine Corp, and Canadian Solar Inc.

Currently, the analyst consensus on Nextera Energy Partners is a Moderate Buy with an average price target of $50.20.

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Based on Nextera Energy Partners’ latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $155 million and GAAP net loss of $16 million. In comparison, last year the company earned revenue of $212 million and had a net profit of $79 million.

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NextEra Energy Partners LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America, as well as natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.