CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We have a negative-leaning view on NEE's announced merger with Dominion Energy (D) as we expect regulatory approval to be a challenging endeavor. We see material risk of triggering the $4.83B breakup fee to be paid by NEE to D upon failure to achieve regulatory approval. Washington Analysis, CFRA's policy research group, notes particular scrutiny to come from Virginia policymakers and expects additional pushback from South Carolina. North Carolina is likely to be a bit more supportive. We expect $2.25B in bill credits for D customers to nudge forward the odds of approval, but other actions (such as asset sales) may be needed to get the deal across the line. In our opinion, there are real merits to the deal rationale, but execution risk is notable and direct financial boosts are relatively moderate. We keep our 12-month target at $106, 25.8x our next-12-month EPS estimate, above peers and NEE's five-year average forward P/E of 24.4x. Our 2026 and 2027 EPS estimates are kept at $4.13 and $4.50, respectively.