5 Cheap Utility Stocks to Buy According to Analysts

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1. NextEra Energy Partners, LP (NYSE:NEP)

Number of Hedge Fund Holders: 30

Average Upside Potential Based on Analyst Ratings: 44.86%

Average Price Target: $84.31

NextEra Energy Partners, LP (NYSE:NEP) purchases, possesses, and handles clean energy projects under contract in the United States. Its portfolio comprises contracted renewable energy generation assets, including wind, solar, and battery storage projects, as well as contracted natural gas pipeline assets. The company was established in 2014 and is headquartered in Juno Beach, Florida. NextEra Energy Partners, LP (NYSE:NEP) is one of the top cheap utility stocks to buy according to analysts. 

On January 26, Oppenheimer’s analyst, Colin Rusch, increased the company’s price target on NextEra Energy Partners, LP (NYSE:NEP) from $88 to $94 and maintained an Outperform rating on the shares. The firm reported Q4 results below consensus estimates due to reduced wind production YoY and increased PTC allocations. However, it affirmed the run-rate expectations for 2023 and extended its 12%-15% DPS CAGR target until 2026. Oppenheimer believes that NextEra Energy Partners, LP (NYSE:NEP) is well-placed, given the company’s efficient management of the cost of capital.

According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on NextEra Energy Partners, LP (NYSE:NEP), compared to 21 funds in the prior quarter. 

ClearBridge Investments mentioned NextEra Energy Partners, LP (NYSE:NEP) in its first quarter 2021 investor letter

“NEP is a growth-oriented contracted renewables company formed by its sponsor and general partner NextEra Energy (NEE) to own, operate and acquire contracted renewable energy generation assets located in North America. Growth comes from the dropdown of assets from NEE and we anticipate this should allow NEP to provide 12%–15% dividend growth to 2024. Shares were higher amid an improved renewables project backlog following fourth-quarter results. Continued positive green policy news following the Democrats’ runoff election wins also raised expectations of green fiscal stimulus.”

Follow Nextera Energy Partners Lp (NYSE:NEP)

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