Welcome to Extreme Investor Network, where we provide exclusive insights and valuable information for investors looking to make smart financial decisions. Today, we are taking a closer look at NextEra stock, which recently experienced a drop of more than 5% after its investor conference. However, Goldman Sachs sees this as a buying opportunity, as the power company is forecasting robust growth for the foreseeable future.
According to analysts at Goldman Sachs, the recent pullback in NextEra’s stock price represents a buying opportunity. The drop in share price can be attributed to positioning following strong performance over the last three months and a resetting of expectations on near-term growth opportunities. NextEra shared with investors that power demand is expected to increase by 38% over the next two decades in the U.S., with much of the demand being met by renewable generation and battery storage.
Goldman Sachs has increased its price target for NextEra by $7 to $81 per share, implying an 11% upside from the current price. The company is planning 42 gigawatts of renewable development over the next three years, representing a doubling of its existing portfolio. While the headline number may be lower than expected, the midpoint is still at the top of the previous range, indicating strong growth prospects for NextEra.
“We believe the long term growth prospects for NEE remain strong and are expanding with the expected inflection in power demand growth, despite the fact that logistically, it will take time for these projects to be built and contribute to earnings,” said Carly Davenport and her colleagues at Goldman Sachs.
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