NRG Yield Upgraded At Barclays, Shareholders Approve Split

In a report published Wednesday, analysts at Barclays upgraded NRG Yield Inc (NYSE: NYLD) from Equal-Weight to Overweight. The price target was raised from $58 to $60. The company's shareholders have approved the issuance of new share classes."On 5/5 shareholders approved the split of NYLD's shares, which will enable the company to raise capital at a lower cost and as a result could lead to third party M&A. The split is of NYLD's publicly held A shares into A and C shares and NRG's B shares into B and D shares," the analysts stated.The new structure will offer the company the capacity to raise new equity worth more than $20 billion, without the need for any participation from NRG Energy, Inc. (NYSE: NRG), thereby leaving NRG's majority voting control unaffected.NRG Yield had earlier indicated incremental CAFD of $105 million and adjusted EBITDA of $220 million for 2015 and beyond. In addition, the company's backlog, including the residential solar segment, is expected to fund dividend growth for the next four years."We like NYLD for: 1) Attractive total return; 2) Approval of the share split; 3) 17 year average contract life; and 4) Strong backlog," the analysts added.