NRG Energy price target raised to $167 from $115 at BMO Capital

BMO Capital analyst James Thalacker raised the firm’s price target on NRG Energy (NRG) to $167 from $115 and keeps a Market Perform rating on the shares. The company has announced the acquisition of a 12.9GW/6GW C&I VPP portfolio from privately held LS Power for $12.9B in cash, stock and assumed debt, and the firm views the announcement positively given the company’s enhanced business profile, visible EPS and free cash flow accretion, the analyst tells investors in a research note. BMO adds that a re-rating for NRG shares rests upon management’s ability to demonstrate the revenue synergies between its traditional energy business and Vivint’s higher margin and longer customer retention model.