UPDATE: Oppenheimer Starts NRG Yield (NYLD) at Perform
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(Updated - September 8, 2016 9:52 AM EDT)
Oppenheimer initiated coverage on NRG Yield (NYSE: NYLD) with a Perform rating. Analyst Colin Rusch noted that the company is highly levered relative to peers.
"We believe that NYLD benefits from its scale and diverse portfolio of generating assets. However, the company is also highly levered relative to peers, and while we acknowledge the cash flow-matching characteristics inherent in its debt portfolio, we note that cash flow variability caused by resource availability could result in a strain on the company’s liquidity. We also note that our runoff scenario suggests that without additional CAFDS-accretive acquisitions, the company risks not being able to meet its current debt service and simultaneously achieve its goal of 15% annual dividend growth," said Rusch.
Shares of NRG Yield closed at $17.33 yesterday.
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