Emera's (EMA) updated capital plan and reaffirmed earnings guidance offer clarity on near-term growth, but these have already been priced in, leaving limited room for upside, BofA Securities said in a note Monday.

The updated capital plan reflects slower Canadian growth and focuses on Florida, the brokerage said, adding that it agrees with the management's plan to prioritize Florida operations.

However, BofA said it is hard to rationalize a premium on just Florida's outlook, particularly due to the lack of significant catalysts like data center-driven load growth that utilities in the Southeast are benefiting from.

The brokerage also said Nova Scotia's economic challenges and questions around its regulatory environment dampen confidence in consolidated growth, making it difficult to forecast upside beyond the 5% to 7% earnings per share growth guidance range, which is below the 8% consensus estimate.

BofA downgraded Emera to neutral from buy, and lowered its price target to 69 Canadian dollars ($49.74) from CA$74.

Shares of Emera were down 1.8% in recent trading Monday.

Price: 48.03, Change: -0.86, Percent Change: -1.76