03:21 PM EDT, 07/01/2024 (MT Newswires) -- NextEra Energy Partners ( NEP ) may face a dividend cut amid $3.7 billion in convertible equity portfolio financing liabilities

after 2026 and "insufficient growth from wind repowerings," RBC Capital Markets said Monday in a report.

"We do not have full confidence in the suite of solutions being sufficient to maintain a healthy" cash available for distribution run rate to meet the dividend payout, the report said.

UBS lowered its rating on the stock to sector perform from outperform and cut its price target to $30 from $38.

"While there is still time until management faces the situation, we are uncomfortable with the risk relative to the return profile," the report said.

RBC revised its dividend forecasts for 2024 to 2027 to $3.65, $3.86, $2.00 and $2.06 from $3.62, $3.80, $3.99, and $4.19.

NextEra Energy share slumped 7.5% in recent Monday trading.

Price: 25.56, Change: -2.08, Percent Change: -7.52