Barclays (NYSE:BCS) maintained its "Overweight" on NextEra (NYSE:NEE), citing the probability of a rate approval increase after the staff approves FP&L Settlement.
"On Monday afternoon, Florida PSC staff filed testimony approving a settlement that had been adopted by all parties as part of FP&L's reconsideration motion following its most recent rate case. The approval by staff is a positive for the stock, in our view, as it increases the likelihood of the settlement's approval by the FPSC and removes a potential overhang. Procedural issues still remain, but if all goes smoothly the settlement could be voted on by the FPSC at the Oct 12 meeting. Our price target goes to $58, reflecting updates to our open EBITDA valuations published in a report titled 'Spark to Market' on 10/4/2010 and changes to '12 P/E multiples," said Barclays.
NextEra closed at $54.40 Tuesday, gaining $0.41, or 0.76 percent. Barclays lowered their price target on the company from $60 to $58.
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