Dominion Stock Clocks Best Day In 6 Years — This Analyst Sees Further Upside After NextEra Merger

• As per data from Koyfin, 19 analysts covering the stock have a 12-month average price target of $66.53 on D stock at present.
• On Monday, Dominion Energy said that it would merge with NextEra Energy in an all-stock deal.
• On Stocktwits, retail sentiment jumped to ‘extremely bullish,’ with message volume jumping by more than 1,866% over 24 hours.

Shares of Dominion Energy Inc. (D) closed up 9.44% on Monday, the steepest climb since March 2020, after NextEra Energy (NEE) announced an agreement to acquire the company in an all-stock deal.

The Richmond, Virginia-headquartered company’s stock jumped onto the retail radar, with messages jumping by more than 1,866% on Stocktwits over 24 hours, according to platform data.

Dominion also received attention on Wall Street, with RBC Capital hiking the price target on the firm.

Wall Street On Dominion

RBC Capital analyst Stephen D'Ambrisi hiked the price target on Dominion to $72 from $66 and kept a ‘Sector Perform’ rating on the shares after the deal announcement, according to TheFly. The rate hike implies an upside of 6.6% from its last close.

The analyst said the hike comes after the formal announcement of NextEra Energy's (NEE) all-stock acquisition of Dominion at an implied $77 per share, and reflects the current implied deal consideration.

As per data from Koyfin, 19 analysts covering the stock have a 12-month average price target of $66.53 on D stock at present, about 1.5% lower than the company’s last close. Of these, 16 analysts have a ‘Hold’ rating on the shares, while three have a ‘Buy’ rating.

Dominion-NextEra Deal Contours

On Monday, Dominion Energy said that it would merge with NextEra Energy in an all-stock deal to create the world's largest regulated electric utility business, serving 10 million customers across four southeastern states.

Under the deal, Dominion Energy shareholders will receive a fixed exchange ratio of 0.8138 NextEra Energy shares for each share of Dominion Energy, and will own about 25.5% of the combined company. After the deal, the combined company will trade under the ticker symbol NEE.

The deal is expected to close in the next 12 to 18 months.

Dominion Stock: Retail Stance

On Stocktwits, D stock was trending at the time of writing. Retail sentiment jumped from ‘bullish’ to ‘extremely bullish’ territory over 24 hours, as message volumes surged from ‘high’ to ‘extremely high’ levels.

One user said NextEra acquired Dominion at a “bargain price of $65-66 from where it was a few years back at $87.” The user added that NextEra will maximize shareholder value with the acquisition.

Another bullish user predicted that the company’s shares would rise to $70. Shares were trading around $67.56 at the time of writing.

A third user said, “all the ppl saying this merger is in Danger … we are in different times …. energy is a key component…. and this will go because this is where the country is going …..”

Dominion shares have risen more than 14% so far this year. Meanwhile, NEE stock has added 10% in the same time.

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