NextEra Energy (NEE) PT Raised to $104 at UBS on Rising Data Center Power Demand

Core Insights - NextEra Energy Inc. is recognized as a leading investment opportunity in the electric vehicle sector, with UBS raising its price target to $104 from $91, citing strong positioning to meet increasing power demand from large-scale customers like data centers [1] - The company reported an adjusted EPS of $3.71 for 2025, reflecting an 8.2% year-over-year increase, and a GAAP net income of $1.535 billion in Q4, up from $1.203 billion in the same period of 2024 [2] - NextEra Energy added 13.5 gigawatts to its backlog, totaling approximately 30 gigawatts, and plans to recommission the Duane Arnold nuclear plant through a power purchase agreement with Google, indicating strong demand from hyperscalers [3] Financial Performance - The adjusted EPS for 2025 was $3.71, exceeding financial expectations with an 8.2% increase year-over-year [2] - Q4 GAAP net income rose to $1.535 billion, an increase from $1.203 billion in Q4 2024, attributed to operational execution across both regulated utility and competitive energy segments [2] Growth Strategy - NextEra Energy has set a long-term growth target of 8% or more in adjusted EPS through 2035, with projections for 2026 adjusted EPS in the range of $3.92 to $4.02 [3] - The company plans a 10% annual dividend growth rate through the end of the year, supporting its financial outlook [3] Operational Highlights - The company operates through its subsidiaries, generating, storing, transmitting, distributing, and selling electric power to retail and wholesale customers in North America, primarily through Florida Power & Light Company and NEER segments [4] - The recommissioning of the Duane Arnold nuclear plant through a partnership with Google highlights the company's strategy to meet high demand from hyperscalers [3]