Pritchard Increases Price Target For NRG Energy (NG)

NRG Energy NRG demolished estimates in its Q2 report. The company posted EBITDA of $693 versus street consensus of $542 million. Pritchard Capital Partners raised its price target by $3 to $24. This performance was driven primarily by favorable weather. Pritchard said, "Our new price target of $24 is calculated using an EV/EBITDA of 6.7x (was 6.5x), approximately a 10% discount (was 15%) to the peer group multiple. We believe this discount is warranted due to the risk associated with STP. Risks to achieving our price target include a significant decline in natural gas prices, reduced demand for power, increases in delivered PRB coal prices and potential costs associated with new environmental regulations." NRG is currently rated Neutral by Prichard. Shares are currently trading at $23.