NRG Energy (NRG – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Neil Kalton from Wells Fargo maintained a Buy rating on the stock and has a $200.00 price target.
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Neil Kalton has given his Buy rating due to a combination of factors surrounding NRG Energy’s strategic acquisition and financial outlook. The acquisition of LS Power’s 13 GW generation fleet is seen as a significant enhancement to NRG’s power platform, providing a substantial increase in scale at a favorable valuation. This move is expected to be highly accretive, with projections indicating a notable increase in earnings per share (EPS) over the coming years, driven by planned debt reduction and stable power price assumptions.
Additionally, the acquisition positions NRG to capitalize on long-term, premium-priced opportunities in the data center sector, particularly in Texas and the PJM region. The company’s strategic partnerships and agreements for new generation capacity further bolster its growth prospects. Kalton’s positive outlook is also supported by an increased EPS forecast and the expectation of regulatory approval for the acquisition, making NRG an attractive investment opportunity.
In another report released on May 5, Jefferies also maintained a Buy rating on the stock with a $132.00 price target.