Wunderlich Reiterates Buy Rating On NextEra Energy, Upgrades EPS (NEE)

Wunderlich Securities has reiterated its Buy rating on NextEra Energy (NYSE: NEE) and upgraded its earnings per share estimates in a research report published today.

In the report, Wunderlich states, "We are raising our 2011 EPS estimate by $0.05 per share. The hike reflects the lower depreciation associated with longer useful lives of newer wind assets (30 years, up from 25 years), which is a benefit of about $0.10. However, offsetting that is the lower amount of convertible investment tax credits (CITCs) and lower 2011 new wind development. We note that the lower CITCs will improve earnings prospects for 2012 and beyond as a result of the earnings from production tax credits." This upgrade comes in spite of NextEra's Q1 results had failed to meet market expectations.

Wunderlich has set its price target to $60.00 on NextEra's shares.

On Friday, NextEra's shares lost 0.46% to end the week at $56.57.