UPDATE: Jefferies Lowers PT on NRG Energy to $23

Jefferies is out with its report today on NRG Energy (NYSE: NRG), lowering its PT from $27 to $23.

In its report, Jefferies writes, "Using an EV/EBITDA valuation, we arrive at a price target of $23.00/share based on an 8.4x multiple on unhedged wholesale EBITDA, a 3.0x multiple on the retail and Green Mountain businesses, and the present-value of the company's in-the-money hedges. Based on our 2015 group average EV/EBITDA multiple of 8.4 times, NRG is currently trading at a 5% discount to the group. In our forecast, we assume the company's current environmental forecast will meet new mercury and HAP limits and do not expect NRG to build scrubbers on all of their coal-fired power plants."

Jefferies maintains Buy on NRG.