NRG Energy initiated with a Strong Buy at Raymond James

Raymond James analyst J.R. Weston initiated coverage of NRG Energy (NRG) with a Strong Buy rating and $195 price target NRG has flipped the narrative of being “net short” power, thanks to its significant retail presence, while the CPower acquisition brings added upside from demand response capabilities, reinforcing NRG’s positioning to benefit from rising natural gas and power prices, the analyst tells investors in a research note. Embracing an “additionality” strategy, the company is leveraging high-impact growth drivers, including brownfield sites, a gas turbine JV, uprate and conversion opportunities, and three TEF projects, all of which comes while preserving financial flexibility, with approximately $1B in committed share repurchases through the post-deal deleveraging phase and increasing thereafter, the firm says.