NextEra Energy Partners (NYSE: NEP) stock has lost about 60% of its value over the past year. That drove the renewable energy producer's dividend yield above 12%. Rising interest rates and their impact on its ability to grow have weighed heavily on the company.

That sell-off is a bit too much in the eyes of one Wall Street firm. Evercore ISI recently initiated coverage on the renewable energy producer, giving it an outperform rating and a $43 price target. That's over 50% above its recent price. Here's a look at what's driving this view and whether the analyst is overly optimistic.

In initiating coverage on NextEra Energy Partners, Evercore ISI highlighted the company's simplification strategy as a major catalyst. The clean energy infrastructure company unveiled plans to sell its natural gas pipeline assets to focus on renewable energy. It intends to use those proceeds to repay funding used to make acquisitions. The company also slowed its dividend growth target to 5%-8% annually with a goal of 6%.

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Source Fool.com