UBS analyst Ross Fowler downgraded NRG Energy (NRG) to Sell from Neutral with a price target of $30, down from $42. The company’s $5.4B acquisition of Vivint Home Solar (VVNT) is significant in scale and represents a major strategic shift for NRG and investment thesis for the stock, the analyst tells investors in a research note. Fowler cites increasing risk premium, a needed transition of the shareholder base, and uncertainties around growth profile and congruent strategy between electric/gas service and home security.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on NRG:
- NRG Energy falls -13.9%
- NRG Energy falls -10.0%
- NRG Energy falls -11.7%
- Vivint Smart Home jumps 32% to $11.86 after NRG Energy buyout offer
- VVNT Surges as NRG Energy Snaps it Up for $5.2 Billion
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue