Goldman Sachs Starts NextEra Energy Partners, LP (NEP) at Neutral

Goldman Sachs initiates coverage on NextEra Energy Partners, LP (NYSE: NEP) with a Neutral rating and a price target of $35.00.

Analyst Michael Lapides said, "NEP’s business model as a renewable “YieldCo” remains attractive given low-risk, contracted assets that NextEra Energy (NEE) can “drop down” into NEP, driving dividend growth. However, following a 40% increase in the shares followings the IPO we see valuation as reasonable. Our forecasts include the drop-downs identified by NEE and NEP over the next few years – we forecast 2015/2016/2017 EBITDA of $310mn/$422mn/$607mn and dividends per share of $0.87/$1.01/$1.18."

For an analyst ratings summary and ratings history on NextEra Energy Partners, LP click here. For more ratings news on NextEra Energy Partners, LP click here.

Shares of NextEra Energy Partners, LP closed at $34.52 yesterday.

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