UPDATE: Citigroup Upgrades NRG Energy to Buy, Raises PT
In a report published Monday, Citigroup upgraded its rating on NRG Energy (NYSE: NRG) from Neutral to Buy, and raised its price target from $24.00 to $26.00.
Citigroup noted, “We rate the shares of NRG Energy Buy because: 1) we believe further tightening of supply/demand fundamentals and the potential for associated power market reform in NRG's primary market of Texas could prove a to be a significant catalyst for the wholesale business, 2) the completion of NRG's capital structure simplification initiative should offer greater flexibility for deploying the company's robust cash position, and 3) the pending merger with GenOn Energy delivers substantial earnings and cash flow benefits to the business. Recent volatility has left shares mispricing a variety of near term catalysts facing NRG, offering an attractive entry point in our opinion.”
NRG Energy closed on Friday at $21.21.
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