NextEra (NEE) Positioned for Growth, Says Goldman as It Reiterates Buy

NextEra Energy Inc. (NYSE:NEE) is one of the best defensive stocks to invest in according to analysts. On July 23, Goldman Sachs analyst Carly Davenport reiterated a Buy rating on NextEra Energy and kept the price target unchanged at $91. Despite a recent pullback in the stock following Q2 results, Davenport remains confident in the company’s long-term outlook through 2029.

Investor concerns were primarily related to limited visibility beyond 2027 on development plans and earnings growth. However, Davenport pointed to potential upside from upcoming regulatory decisions, particularly the Florida Power & Light rate case, which could serve as a positive near-term catalyst.

The analyst also discussed the implications of the “One Big Beautiful Bill Act.” While the planned phase-out of solar and wind tax credits by 2027 introduces some uncertainty, Davenport believes NextEra is well-positioned to benefit due to its large project pipeline and strong execution capabilities. This gives the company a competitive edge, which, along with a healthy balance sheet and continued access to tax equity markets (i.e., investors provide capital in exchange for tax benefits), supports the analyst’s constructive stance on the stock.

NextEra Energy Inc. (NYSE:NEE) is one of the largest electric power and energy infrastructure companies in North America, having a diverse portfolio of assets, primarily including natural gas, wind, solar, and nuclear generation facilities and battery storage facilities.

While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.