Citi analyst Ryan Levine has maintained their bullish stance on NRG stock, giving a Buy rating on November 1.
Ryan Levine’s buy rating on the NRG Energy stock is driven by several factors, with the company’s strong financial performance, aggressive buyback approach, and positive outlook being among the key elements. NRG Energy’s Q3, FY23E, and FY24E EBITDA surpassed Street estimates, demonstrating improved margins and volumes. Additionally, the successful integration of Vivint and the accelerated share buyback program, which represents about 17.5% of NRG’s market cap, has further increased confidence in the company’s current leadership.
Levine also cited the company’s increased target price (TP), raised to $52 from $46, as another reason to maintain a positive outlook on the stock. Furthermore, he noted the company’s $160M higher margins, which are expected to significantly boost the 2024 EBITDA. The company’s strategic plan to diversify its power supply, optimize its portfolio, and improve plant performance are other factors contributing to Levine’s optimistic outlook. Lastly, the integration of a comprehensive demand response system and the potential for additional investments in power generation further solidify the buy recommendation for NRG Energy.
In another report released on November 1, Guggenheim also upgraded the stock to a Buy with a $50.00 price target.
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NRG Energy (NRG) Company Description:
NRG Energy, Inc. engages in the production, sale, and distribution of energy and energy services. It operates through the following segments: Generation, Retail, and Corporate. The Generation segment includes all power plant activities, domestic and international, as well as renewables. The Retail segment includes mass customers and business solutions, and other distributed and reliability products. The Corporate segment includes residential solar and electric vehicle services. The company was founded in 1989 and is headquartered in Princeton, NJ.
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- NRG Energy upgraded to Buy from Neutral at Guggenheim
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