Why NextEra Energy Partners Stock Slumped 18% in June
NextEra Energy Partners (NYSE: NEP) stock gained solid momentum in May, but the euphoria only lasted so long. The renewable energy stock slumped 18% in June, according to data provided by S&P Global Market Intelligence, wiping out all of its gains through May and some. As of this writing, shares of NextEra Energy Partners are now down 13% this year amid fears of a dividend cut.
NextEra Energy Partners stock plunged in 2023 after the company blamed funding constraints amid high interest rates and slashed its dividend growth goal through 2026 by almost half to 5% to 8% per year with an annual target of 6%. Last month though, NextEra Energy Partners reaffirmed its dividend growth target, but investors and analysts are skeptical.
analyst Christine Cho cut NextEra Energy Partners stock's price target to $25 a share from $32 per share in June in light of the company's upcoming debt maturities. If NextEra Energy Partners cannot raise more funds, Cho fears it may have to cut its dividend by as much as 45% to 75% to repay debt worth $3.7 billion maturing between 2026 and 2032.
Source Fool.com
