CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We see more favorable risk/reward for D vs. NEE. For now, our base case assumes the merger falters on regulatory hurdles. In this situation, we don't expect D shares to fall to the ~$62 pre-announcement price due to the $4.83B breakup fee D will receive if the deal falls through. In the simplest situation, the cash influx equates to a ~$5.50 per share valuation boost, where we see a rough valuation floor around $67. D could deploy the breakup fee to reduce debt, lower future financing needs for its capital plan, pursue bolt-on acquisitions, or return capital to shareholders. Based on May 19 closing and the .8138 exchange ratio, the market is pricing in a ~7.6% risk premium for deal failure. We expect that to narrow on positive developments. Currently, we see a valuation ceiling of ~$86 based on our $106 NEE price target. We lift our 12-month target by $8 to $72, 20.0x our next-12-month EPS estimate of $3.58. Our 2026 and 2027 EPS views are kept at $3.59 and $3.81 respectively and reflect standalone D.