UPDATE: Deutsche Bank Lowers PT on NRG Energy on Mixed Factors
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on NRG Energy (NYSE: NRG), but lowered the price target from $27.00 to $26.00.
In the report, Deutsche Bank noted, “Increasingly diverse with solid FCF, but generation / retail outlooks a challenge. In this report, we update estimates post Q2, our valuation after the spin-off and IPO of NRG Yield, and our investment thesis and key drivers. NRG has several diverse businesses - generation, retail, solar, clean energy technologies, and now a separate MLP-like income vehicle for contracted assets. This helps to diversify away from the seemingly perennially challenged merchant generation business, but it also results in an increasingly complex story that may pose a challenge for investors and valuation. NRG generates solid FCF even in a fairly weak power market environment, but we maintain our Hold rating given limited fundamental upside and a now less attractive catalyst calendar.”
NRG Energy closed on Friday at $26.06.
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