NextEra Energy, Inc. (NYSE: NEE) has been recovering after a challenging 2024 for utilities. Shares trade around $85/share, up from last year’s lows as investor confidence returns to renewables. The company remains a leader in clean energy through Florida Power & Light and its large renewable portfolio.
Recently, NextEra announced new solar and battery storage projects in Florida and Texas, expanding its renewable footprint to meet growing power demand. The company also reaffirmed confidence in its long-term growth plans, emphasizing consistent earnings and strong cash generation even in a higher-rate environment. These developments highlight why NextEra remains one of the most dependable growth stories in the utility sector.
This article explores where Wall Street analysts think NextEra Energy could trade by 2027. We’ve gathered consensus price targets and valuation model data from TIKR to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
Unlock our Free Report: 5 AI compounders that analysts believe are undervalued and could deliver years of outperformance with accelerating AI adoption (Sign up for TIKR, it’s free) >>>
Analyst Price Targets Suggest Modest Upside
NextEra trades around $85/share today. The average analyst price target is $87/share, which points to about 2% upside over the next year. The range of forecasts is broad:
- High estimate: ~$103/share
- Low estimate: ~$56/share
- Median target: ~$85/share
- Ratings: 10 Buys, 4 Outperforms, 5 Holds, 1 Underperform, 1 Sell
Analysts see limited near-term upside, but sentiment remains constructive. For investors, this suggests the stock is already priced for stability and steady dividend growth. Upside could improve if renewable expansion accelerates or cost efficiencies exceed expectations.
See analysts’ growth forecasts and price targets for NextEra Energy (It’s free!) >>>
NextEra Energy: Growth Outlook and Valuation
The company’s fundamentals appear healthy, supported by stable regulated operations and a growing renewable portfolio:
- Revenue growth forecast: ~12% annually through 2027
- Operating margins: ~37%
- Forward P/E: ~24x, slightly above peers
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20x forward P/E suggests ~$102/share by 2027
- That implies about 19.5% total upside, or roughly 8.4% annualized returns
These figures point to steady compounding rather than rapid growth. For investors, NextEra looks like a quality hold trading at a modest premium that reflects its strong balance sheet, predictable earnings, and consistent dividend record.
Value stocks like NextEra Energy in as little as 60 seconds with TIKR (It’s free) >>>
What’s Driving the Optimism?
NextEra continues to strengthen its position as the leading clean-energy utility in the U.S. Florida Power & Light delivers stable, regulated earnings, while the renewables arm keeps expanding its solar and battery storage projects across multiple states. Federal incentives under the Inflation Reduction Act have helped sustain attractive economics for new clean-energy investments.
Management’s disciplined capital allocation and focus on efficiency are key advantages. The company’s long-term growth target of 6% to 8% annually remains intact, signaling strong confidence in both regulated and renewable earnings.
For investors, these strengths point to a company with durable growth visibility backed by one of the most diversified portfolios in the utility sector. NextEra’s ability to compound earnings through multiple cycles gives it an edge over peers and supports steady dividend growth.
Bear Case: Rates and Valuation
Despite its leadership in renewables, NextEra still faces headwinds. Elevated interest rates raise financing costs for new projects, while regulators could limit rate increases in certain jurisdictions. At around 24x forward earnings, the stock trades at a premium to peers, leaving less room for error.
If borrowing costs remain high or project execution slows, valuation multiples could compress further.
For investors, the main risk is that the current premium multiple may not hold if growth expectations slip or energy prices remain volatile. NEE’s long-term story is solid, but near-term returns could lag if markets stay focused on rate sensitivity.
Outlook for 2027: What Could NextEra Be Worth
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20x forward P/E suggests NextEra could trade near $102/share by 2027. That represents about 19.5% total upside, or roughly 8.4% annualized returns from current levels around $85/share.
While this points to healthy compounding, it also assumes continued execution and stable policy support for renewables. To outperform these expectations, NextEra would likely need faster cost reductions in solar and storage or stronger demand growth in Florida’s regulated markets.
For investors, NEE looks like a dependable long-term compounder. The upside may not be dramatic, but its combination of steady earnings, dividend growth, and renewable momentum makes it one of the more resilient names in the utility space.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.