Goldman Sachs Group, Inc.: Data center and diversified energy layout will become new growth engines to maintain a "Buy" rating for NextEra Energy (NEE.US) in the new era.

Goldman Sachs Group, Inc. issued a research report stating that the management of NextEra Energy (NEE.US) recently raised the company's profit growth expectations and expects new businesses such as data centers and renewable energy partnerships to open up long-term growth opportunities. Based on these positive signals, Goldman Sachs Group, Inc. maintains a "buy" rating for this U.S. Energy Corp. giant with a 12-month target price of $94. In its latest research report, Goldman Sachs Group, Inc. stated that the management of NextEra Energy updated performance guidance at a recent event, forecasting an average annual earnings per share (EPS) growth rate of over 8% by 2032. This growth expectation is mainly attributed to the support of electrification and large load demand trends. The company also revealed that there may be $60-90 billion in incremental capital expenditure opportunities in its 77-108 GW resource development pipeline, which is equivalent to 20%-30% of the current plan. If these investments materialize, they will further drive EPS growth. In addition, Chief Financial Officer Mike Dunne highlighted the expansion of the data center business, stating that the company's subsidiary Florida Power & Light Company (FPL) has been approved for a data center electricity pricing scheme and has three potential data center sites, which will be important drivers of growth. Furthermore, the company continues to focus on transmission projects, with regulated capital expected to grow at a compound annual growth rate of 20% by 2032. Dunne also emphasized that the company, with its scale advantage (employing approximately 140,000 construction workers last year), has mitigated supply chain and labor pressures; in terms of renewables, the company stated that its project interconnection capacity is sufficient and offers scheduling flexibility; despite limitations in natural gas supply, collaboration with Comstock is expected to enable natural gas circulation by 2027; in the nuclear power sector, the company is optimistic about the development of third-generation small modular reactors over the next 5-10 years and anticipates transitioning to fourth-generation technology in the future; additionally, some wind power purchasing agreements signed in the mid-2010s have prices at a low of about $15-18 per megawatt-hour, with potential for revenue increases through renegotiation. Finally, the management of NextEra Energy stated that the company is well positioned to capitalize on data center business opportunities and address the Inflation Reduction Act (IRA) tax credits and the Foreign Entity Ownership Consolidation (FEOC) regulations. The company plans to provide holistic solutions for large-scale customers through strategic land layout, fair electricity pricing structures, rapid deployment of battery storage (targeting an average of 5-6 GW per year), and localized supply chains. Additionally, collaboration with Alphabet Inc. Class C (GOOGL.US) is planned to help reduce costs through data analysis and artificial intelligence, with related revenue not included in current performance forecasts and expected to be an additional growth driver.