UBS Maintains a 'Neutral' on NRG Energy (NRG); Nuclear Ambitions Officially Abandoned
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Price: $115.36 -4.33%
Rating Summary:
24 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
24 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UBS maintains a 'Neutral' on NRG Energy (NYSE: NRG), PT increased by $1 to $23.
UBS analyst says, "In a largely anticipated announcement, NRG officially declared it was no longer pursuing its STP new nuclear project. NRG cited: 1) the limited availability of further equity investors to whom to selldown the project; 2) uncertainty with regards to revised costs; 3) no PPAs having come to a fruition; and 4) a challenging outlook for tapping Japanese-led export financing. We are removing an aggregate ~$600 Mn in equity contributions through ‘18E from our model (of which ~.$50 Mn/yr through ’14). Wind down expenses in ’11 amount to $20 Mn...$481 Mn writeoff should increase NOL balance; more solar tax-equity?...FCF yield remains robust; dark spread remains our primary concern...We believe Street expectations continue to understate an FCF yield of ~20%; we believe shares could outperform in 2H ahead of mgmt calling ‘16/’17 bonds in ’12."
For more ratings news on NRG Energy click here and for the rating history of NRG Energy click here.
Shares of NRG Energy closed at $22.46 yesterday.
UBS analyst says, "In a largely anticipated announcement, NRG officially declared it was no longer pursuing its STP new nuclear project. NRG cited: 1) the limited availability of further equity investors to whom to selldown the project; 2) uncertainty with regards to revised costs; 3) no PPAs having come to a fruition; and 4) a challenging outlook for tapping Japanese-led export financing. We are removing an aggregate ~$600 Mn in equity contributions through ‘18E from our model (of which ~.$50 Mn/yr through ’14). Wind down expenses in ’11 amount to $20 Mn...$481 Mn writeoff should increase NOL balance; more solar tax-equity?...FCF yield remains robust; dark spread remains our primary concern...We believe Street expectations continue to understate an FCF yield of ~20%; we believe shares could outperform in 2H ahead of mgmt calling ‘16/’17 bonds in ’12."
For more ratings news on NRG Energy click here and for the rating history of NRG Energy click here.
Shares of NRG Energy closed at $22.46 yesterday.
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