Focus on renewable energy and a strong balance sheet, and Goldman is bullish on Nextera Energy (NEE.US).

Following NEE's development day in Florida on March 18, Goldman reiterated its "buy" rating on the company with a target price of $94.

Goldman analyst Carly Davenport highlighted the company's emphasis on renewable energy as a crucial solution to current supply chain challenges and the higher cost of building natural gas power plants.

Notably, the analyst noted that management continues to face challenges in building new natural gas power plants due to supply chain issues and cost increases.

The company aims to grow electricity demand by 55% by 2040, with 17% coming from data centers, 11% from residential, and 11% from transportation.

Following the event, Davenport expressed optimism about NEE's competitive advantage in power generation and transmission development.

The analyst added that, along with earnings growth, a favorable regulatory environment, and a strong balance sheet, should support a premium valuation.

The company reported fourth-quarter revenue of $5.385 billion in January, below market expectations, and adjusted EPS of $0.53, in line with market expectations.