The firm also lowered its price target to $131 from $133 on shares of the Juno Beach, FL-based electric power and utilities company.
"NEE is deservedly seen as a cut above the average utility with its high-quality, growth Florida franchise and market-leading renewables unit. We do not dispute this, but we do see near-term upside limited with the stock having shrugged off potential execution headwinds," Deutsche Bank wrote in an analyst note.
The firm cited "extraordinarily frosty" commentary from several Public Utility Commission of Texas (PUCT) commissioners yesterday on NextEra's proposed deal to buy Oncor Electric Delivery.
That indicates "more of an uphill approval battle than we thought," Deutsche Bank noted.
"Second, as NEE has said, tax credit extensions may pressure near-term renewables bookings. And third, rate case bid/ask remains unusually wide with few signs of settlement," the firm said.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins.
The team believes strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NEE