Morgan Stanley Lifts NextEra (NEE) Target as Utility Expectations Reset

NextEra Energy, Inc. (NYSE:NEE) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

On January 21, Morgan Stanley raised its price target on NextEra Energy, Inc. (NYSE:NEE) to $104 from $95 and kept an Overweight rating. The firm said the move comes as it refreshes its view on regulated and diversified utilities and independent power producers across North America. Utilities lagged the S&P 500 in December, the analyst noted, which has reset expectations across the group.

The stock also picked up support from other analysts as well. In a January 20 report published by CNBC, Sean Russo of Ritholtz Wealth Management pointed to several strengths in NextEra’s business.

Russo said the company’s long-standing push into clean energy continues to pay off. Florida Power & Light has locked in a multiyear regulatory plan starting in 2026, with an allowed return on equity of about 11%. That agreement gives investors clearer visibility into regulated cash flows while still leaving room to keep investing in solar and battery projects.

He further said that at the same time, NextEra Energy Resources is adding momentum on the growth side. The unit has signed large renewable and storage deals with major technology companies, including Alphabet and Meta. The company expects roughly 15 gigawatts of incremental power demand tied to AI customers by 2035.

NextEra Energy, Inc. (NYSE:NEE) is an electric power and energy infrastructure company. Its operations run through Florida Power & Light and its energy resources and transmission businesses, which together form the core of its regulated and renewable platforms.

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