Wunderlich Securities Maintains Buy on NRG Energy
Wunderlich Securities is out with a research report on NRG Energy, Inc. (NYSE: NRG) and it has a Buy rating and a $27 price target on shares.
In a note to clients, Wunderlich Securities writes, "Late on Monday, NRG Energy (NRG) announced a $125-$150 million reduction in adjusted EBITDA guidance for 2011 as a result of record hot weather in Texas this summer, which drove higher-than-expected costs to serve its retail customer base and operate its generation fleet in Texas. NRG reduced 2011 EBITDA guidance to $1.775-$1.850B, down from $1.9-$2.0B previously. As a result, we are reducing our 2011 EBITDA estimate to $1.810B from $1.908B. Our 2012 EBITDA estimate is unchanged at $1.876B. NRG suggested its share repurchase plans for 2011 are unchanged by the lower EBITDA. NRG currently trades at 6.5x our 2012 EBITDA estimate. We are maintaining our Buy rating and $27 target price."
Shares of NRG are down $1.1 to $18.82, a loss of 5.57%.
