This report is an updated version of the report published on 6 October 2025 after market close

NextEra Energy, Inc. (NYSE: NEE)

NEE is an electric power and energy infrastructure company. It operates primarily through two segments: Florida Power & Light Company (FPL), a utility, and NextEra Energy Resources LLC (NEER), which includes its transmission business.

Recommendation Rationale – SELL at USD 82.11

• Financial Highlights: Total operating expenses increased to USD 4,807mn in 2QFY25 vs USD 4,428mn in 2QFY24, due to increased other operations and maintenance, depreciation and amortization, and taxes other than income taxes and other expenses. Interest expense rose to USD 1,060mn in 2QFY25 vs USD 820mn in 2QFY24.
• Trading Near the Resistance: NEE stock is approaching its R2 level recommended in the report released on 29 July 2025; hence the stock may face some consolidation at current level.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Cash Flow, Price/Earnings, Price/ Book Value) are higher than median of the Electric Utilities & IPPs industry.
• Market Risk: Many of NEE’s renewable and utility projects rely on favourable regulatory structures or environmental policies. If new emission limits or carbon pricing emerge, the costs of compliance or required retrofits may increase. Trade policy (e.g. tariffs on Chinese solar panels or components) may raise capital and equipment costs.

 Daily Price Chart

Valuation Methodology: Price/Earnings Multiple Approach (FY December'26E) (Illustrative)

The stock might trade at a slight premium to its peers considering the YoY growth in revenue, EBITDA and net income in 2QFY25 and expected adjusted EPS in FY25. For conducting the valuation, the following peers have been included: Duke Energy Corp (NYSE: DUK), Public Service Enterprise Group Inc (NYSE: PEG), Spire Inc (NYSE: SR), and others.

Given the stock is approaching its R2 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing market price of USD 82.11, as of 06 October 2025. 

NextEra Energy, Inc. (NYSE: NEE) is a part of Global Fully Charged Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 06 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.