NextEra sinks below $50 for first time since March 2020; KeyBanc downgrades
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NextEra Energy (NYSE:NEE) -4.1% in Thursday's trading and is poised to close below $50 for the first time in nearly three and a half years; the stock has plunged 25% since NextEra Energy Partners (NEP) slashed its growth outlook a week ago.
KeyBanc analysts including Sophie Karp cited concerns over growth sustainability in downgrading the stock Thursday to Sector Weight from Overweight, part of the bank's generally positive outlook on the beaten-down utilities sector (NYSEARCA:XLU).
Karp said the utilities sector has declined to relative levels not seen in more than a decade, except for the brief period during the early pandemic volatility, and sees the current dislocation as an attractive buying opportunity for several names in KeyBanc's coverage.
Upgraded to Overweight from Sector Weight: CMS Energy (CMS), DTE Energy (DTE), CenterPoint Energy (CNP) and Entergy (ETR).
Upgraded to Sector Weight from Underweight: Pinnacle West Capital (PNW).
Reiterated Overweight: Ameren (AEE), Duke Energy (DUK), FirstEnergy (FE), WEC Energy (WEC), Xcel Energy (XEL).

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