Executive Summary

NextEra Energy, Inc. (NEE) exhibits a solid fundamentally backed growth trajectory with current valuations supported by stable earnings, cash flows, and a consistent dividend policy. The technical landscape indicates an upward trend, with recent price action trading around the median analyst target. The stock is well-positioned to reach short-term support and resistance levels, with potential for appreciation towards the high-end target over the long term.

Fundamental Analysis

Metric	Value
Market Cap	$156.67 billion
Enterprise Value	$258.47 billion
P/E Ratio (Trailing)	26.51
Forward P/E	20.67
Price to Book	3.08
Return on Equity	7.59%
Profit Margins	22.85%
Gross Margins	61.97%
Operating Margins	33.85%
Debt to Equity	153%
Total Cash	$1.73 billion
Total Debt	$93.19 billion
Dividend Yield	2.97%
Beta	0.62

NEE’s valuation metrics reflect a mature, cash-flow-generating utility with a healthy dividend yield, moderate leverage, and stable profitability.

Earnings Analysis

Recent earnings reveal robust EBITDA growth, with a notable EPS trailing around 0.97 for the quarter and a positive trend in EPS over the past year (+1y EPS of approximately 3.97). The earnings are supported by strong operating income and revenue stability. EPS revisions are cautiously optimistic with more upward revisions (+2) than downward in the past year, indicating positive analyst sentiment. Earnings quality remains high given consistent revenue growth and margins.

Technical Analysis

Indicator	Analysis
Price Action	The current price ($76.08) suggests a consolidation phase with support near the 50-day moving average ($72.2) and potential resistance close to recent highs (~$77.5).
Moving Average	The stock has recently moved above its 50-day MA, indicating a bullish momentum.
RSI	Current RSI (~75) suggests overbought conditions, which could imply a short-term correction or pause before further upward movement.
MACD	The MACD is above signal, supporting bullish momentum with recent increases in positive momentum.

Analyst Consensus & Price Targets

Target Type	Price	Opinion Count
High	$103	18
Median	$82.50	18
Low	$52	18

The median target ($82.50) aligns closely with recent prices, while the high target ($103) indicates upside potential, particularly once technical and fundamental catalysts align.

Price Target Analysis (Short, Mid, Long-Term)

Short-Term (3 months)

• Price Target: ~$78-$82
• Justification: Current technical momentum, near-term support at ~$72, and market stability suggest limited downside with potential modest upside near the median target.
• Drivers: Quarterly earnings, macroeconomic stability, continued dividend attractiveness.

Mid-Term (12 months)

• Price Target: ~$82.50-$90
• Justification: EPS growth driven by renewable investments and operational efficiencies could push stock towards the median target, with potential for further gain.
• Drivers: Earnings growth, policy tailwinds favoring renewable energy, and stabilization of interest rates.

Long-Term (3+ years)

• Price Target: ~$100-$110
• Justification: Sustained earnings expansion, expansion into renewable markets, and regulatory tailwinds could push NEE toward the high target.
• Drivers: Growth in renewables, infrastructure investments, and potential multiple expansion.

Risks & Opportunities

Risks	Opportunities
Rising interest rates increasing borrowing costs	Accelerated renewable portfolio growth
Regulatory changes affecting utility revenues	Increased dividend payments and share buybacks
Technological disruptions in energy sector	Strategic acquisitions and expansions

Investment Recommendation

Hold with a medium-term bullish outlook, targeting a price range of $82.50-$90 over the next 12 months. Further upside to high targets is possible if earnings and market sentiment align positively. The stock’s risk profile is balanced by its steady dividend, stable earnings, and growth prospects in renewables.

Expected return potential over 12-24 months: 8-15%, with upside potential to the high-end targets given continued sector support.