Jefferies Upgrades Dominion Energy to Buy with $76 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Upgrade Announcement: Jefferies has upgraded Dominion Energy from Hold to Buy with a new price target of $76, up from $65, reflecting optimism regarding the approval of the NextEra acquisition and indicating favorable risk/reward in both deal and no-deal scenarios.
- Earnings Potential: Analyst Paul Zimbardo notes that buying Dominion is akin to purchasing NextEra at an average P/E multiple, with the current ~6% spread providing attractive investment opportunities, and if the deal fails, Dominion's value is expected to increase significantly.
- Capital Expenditure Support: Should the acquisition not proceed, NextEra's $3.4 billion net break fee could finance $8 billion in storage and transmission capex, supporting an 8%-9% compound annual growth rate in EPS, which would materially accelerate the company's earnings growth.
- Risk-Adjusted Returns: For investors confident in the merger's approval, Dominion Energy is viewed as a better risk-adjusted investment vehicle, capturing the potential for NextEra to re-rate higher while providing downside protection through Dominion's spread or a stronger standalone case.
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Analyst Views on D
Wall Street analysts forecast D stock price to fall
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 67.380
Low
59.00
Averages
64.36
High
70.00
Current: 67.380
Low
59.00
Averages
64.36
High
70.00
About D
Dominion Energy, Inc. provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. It develops and operates regulated offshore wind and solar power and is the producer of carbon-free electricity in New England. Its Dominion Energy Virginia segment includes Virginia Power’s regulated electric transmission, distribution and generation operations, which serve homes and businesses in Virginia and North Carolina. Its Dominion Energy South Carolina segment includes DESC’s generation, transmission and distribution of electricity to customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to residential, commercial and industrial customers in South Carolina. Its Contracted Energy segment includes nonregulated long-term contracted renewable electric generation fleet and renewable natural gas facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Merger Impact Analysis: The merger between NextEra Energy, Inc. (NYSE: NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined entity, prompting shareholders to understand the potential implications for their rights.
- Shareholder Rights Protection: InMed Pharmaceuticals, Inc. (NASDAQ: INM) is merging with Mentari Therapeutics, Inc., which is expected to leave InMed shareholders with only about 1.51% ownership in the combined company, highlighting the need for shareholders to be informed about their legal rights.
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- Merger Transaction Analysis: In the merger between NextEra Energy, Inc. and Dominion Energy, Inc., NextEra shareholders will own approximately 74.5% of the combined company upon closing, demonstrating strong consolidation capabilities in the energy market.
- Share Exchange Proposal: In the NextEra and Dominion transaction, Dominion shareholders are expected to receive 0.8138 shares of NextEra for each share of Dominion, which may impact the long-term interests of shareholders from both companies.
- Emerging Pharma Merger: The merger between InMed Pharmaceuticals, Inc. and Mentari Therapeutics, Inc. is expected to result in InMed shareholders owning approximately 1.51% of the combined company, reflecting integration trends and market potential in the pharmaceutical sector.
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- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE:RAMP) regarding its sale to Publicis Groupe at $38.50 per share, which may involve potential violations of shareholder rights, prompting shareholders to consider their legal options.
- Merger Impact Analysis: InMed Pharmaceuticals, Inc. (NASDAQ:INM) is merging with Mentari Therapeutics, Inc., with InMed shareholders expected to own approximately 1.51% of the combined entity, a factor that could significantly affect long-term investment returns for shareholders.
- Shareholder Rights Protection: The transaction between Dominion Energy, Inc. (NYSE:D) and NextEra Energy, Inc. involves an exchange of 0.8138 shares of NextEra for each share of Dominion, and Halper Sadeh LLC may seek to negotiate increased consideration and additional disclosures to safeguard shareholder interests.
- Post-Merger Equity Structure: The merger between NextEra Energy, Inc. (NYSE:NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined company, necessitating shareholder awareness of the potential impacts on their equity value post-merger.
See More
Jefferies Upgrades Dominion Energy to Buy with $76 Target
- Upgrade Announcement: Jefferies has upgraded Dominion Energy from Hold to Buy with a new price target of $76, up from $65, reflecting optimism regarding the approval of the NextEra acquisition and indicating favorable risk/reward in both deal and no-deal scenarios.
- Earnings Potential: Analyst Paul Zimbardo notes that buying Dominion is akin to purchasing NextEra at an average P/E multiple, with the current ~6% spread providing attractive investment opportunities, and if the deal fails, Dominion's value is expected to increase significantly.
- Capital Expenditure Support: Should the acquisition not proceed, NextEra's $3.4 billion net break fee could finance $8 billion in storage and transmission capex, supporting an 8%-9% compound annual growth rate in EPS, which would materially accelerate the company's earnings growth.
- Risk-Adjusted Returns: For investors confident in the merger's approval, Dominion Energy is viewed as a better risk-adjusted investment vehicle, capturing the potential for NextEra to re-rate higher while providing downside protection through Dominion's spread or a stronger standalone case.
See More
NextEra's $67B Dominion Acquisition Sparks EV Charging Debate
- Acquisition Context: NextEra Energy's proposed $67 billion acquisition of Dominion Energy raises questions about how the merged utility will approach electric vehicle charging and transportation electrification in the southeastern U.S., highlighting market interest in future energy integration.
- Current EV Support: Although Dominion and Florida Power & Light provide residential charging incentives and pilot programs, they have not emerged as leaders in the EV space, reflecting traditional utilities' cautious stance in the evolving market.
- Data Center Growth: The U.S. Energy Information Administration reports that commercial electricity sales in Virginia increased by nearly 30 million MWh from 2019 to 2025, primarily driven by data centers, indicating utilities are prioritizing large-load growth tied to this sector.
- Future Outlook: As the largest U.S. renewable energy developer, NextEra could expand the role of utility-scale solar and battery storage in transportation electrification, which may facilitate broader adoption of managed charging and residential vehicle-to-grid technologies in the long term.
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- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE: RAMP) regarding its sale to Publicis Groupe for $38.50 per share, as there may be violations of shareholder rights that investors need to be aware of.
- Merger Impact Analysis: The merger between NextEra Energy, Inc. (NYSE: NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined entity, prompting shareholders to understand the potential implications for their rights.
- Shareholder Rights Protection: InMed Pharmaceuticals, Inc. (NASDAQ: INM) is merging with Mentari Therapeutics, Inc., which is expected to leave InMed shareholders with only about 1.51% ownership in the combined company, highlighting the need for shareholders to be informed about their legal rights.
- Advocacy for Investor Rights: Halper Sadeh LLC represents investors globally, seeking increased consideration and additional disclosures to support those affected by securities fraud and corporate misconduct, thereby enhancing investor protection efforts.
See More
Monteverde Law Firm Investigates Multiple Mergers
- Shareholder Compensation Investigation: Monteverde & Associates is investigating the transaction between LiveRamp Holdings, Inc. and Publicis Groupe, where LiveRamp shareholders are expected to receive $38.50 per share in cash, potentially providing significant returns for shareholders.
- Merger Transaction Analysis: In the merger between NextEra Energy, Inc. and Dominion Energy, Inc., NextEra shareholders will own approximately 74.5% of the combined company upon closing, demonstrating strong consolidation capabilities in the energy market.
- Share Exchange Proposal: In the NextEra and Dominion transaction, Dominion shareholders are expected to receive 0.8138 shares of NextEra for each share of Dominion, which may impact the long-term interests of shareholders from both companies.
- Emerging Pharma Merger: The merger between InMed Pharmaceuticals, Inc. and Mentari Therapeutics, Inc. is expected to result in InMed shareholders owning approximately 1.51% of the combined company, reflecting integration trends and market potential in the pharmaceutical sector.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE:RAMP) regarding its sale to Publicis Groupe at $38.50 per share, which may involve potential violations of shareholder rights, prompting shareholders to consider their legal options.
- Merger Impact Analysis: InMed Pharmaceuticals, Inc. (NASDAQ:INM) is merging with Mentari Therapeutics, Inc., with InMed shareholders expected to own approximately 1.51% of the combined entity, a factor that could significantly affect long-term investment returns for shareholders.
- Shareholder Rights Protection: The transaction between Dominion Energy, Inc. (NYSE:D) and NextEra Energy, Inc. involves an exchange of 0.8138 shares of NextEra for each share of Dominion, and Halper Sadeh LLC may seek to negotiate increased consideration and additional disclosures to safeguard shareholder interests.
- Post-Merger Equity Structure: The merger between NextEra Energy, Inc. (NYSE:NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined company, necessitating shareholder awareness of the potential impacts on their equity value post-merger.
See More
Jefferies Upgrades Dominion Energy to Buy with $76 Target
- Upgrade Announcement: Jefferies has upgraded Dominion Energy from Hold to Buy with a new price target of $76, up from $65, reflecting optimism regarding the approval of the NextEra acquisition and indicating favorable risk/reward in both deal and no-deal scenarios.
- Earnings Potential: Analyst Paul Zimbardo notes that buying Dominion is akin to purchasing NextEra at an average P/E multiple, with the current ~6% spread providing attractive investment opportunities, and if the deal fails, Dominion's value is expected to increase significantly.
- Capital Expenditure Support: Should the acquisition not proceed, NextEra's $3.4 billion net break fee could finance $8 billion in storage and transmission capex, supporting an 8%-9% compound annual growth rate in EPS, which would materially accelerate the company's earnings growth.
- Risk-Adjusted Returns: For investors confident in the merger's approval, Dominion Energy is viewed as a better risk-adjusted investment vehicle, capturing the potential for NextEra to re-rate higher while providing downside protection through Dominion's spread or a stronger standalone case.
See More
NextEra's $67B Dominion Acquisition Sparks EV Charging Debate
- Acquisition Context: NextEra Energy's proposed $67 billion acquisition of Dominion Energy raises questions about how the merged utility will approach electric vehicle charging and transportation electrification in the southeastern U.S., highlighting market interest in future energy integration.
- Current EV Support: Although Dominion and Florida Power & Light provide residential charging incentives and pilot programs, they have not emerged as leaders in the EV space, reflecting traditional utilities' cautious stance in the evolving market.
- Data Center Growth: The U.S. Energy Information Administration reports that commercial electricity sales in Virginia increased by nearly 30 million MWh from 2019 to 2025, primarily driven by data centers, indicating utilities are prioritizing large-load growth tied to this sector.
- Future Outlook: As the largest U.S. renewable energy developer, NextEra could expand the role of utility-scale solar and battery storage in transportation electrification, which may facilitate broader adoption of managed charging and residential vehicle-to-grid technologies in the long term.
See More
Key Wall Street Ratings Updates for Thursday
- Tesla Robotaxi Expansion: Morgan Stanley reiterates Tesla as equal weight, noting survey checks indicate increased hiring of 'AI Safety Operators' in northern metro areas, suggesting Tesla is gearing up for robotaxi operations expansion, which could enhance future revenues.
- National Health Properties Outlook: Citizens initiates coverage of National Health Properties as outperform, believing the REIT is enhancing organic growth by increasing exposure to Senior Housing Operating Properties, indicating confidence in the senior living market.
- Nvidia Data Center Potential: Bernstein reiterates Nvidia as outperform, highlighting the enormous and still early datacenter opportunity, which is expected to provide significant upside, reflecting optimism in tech stocks.
- Quanta Services Rating Upgrade: Oppenheimer upgrades Quanta Services from perform to outperform with an $800 price target, indicating strong growth potential in the coming years, particularly in adjusted EBITDA expectations.
See More
