UPDATE - UBS Upgraded NRG Energy (NRG) to Buy; Unlocking the Cash Lockbox
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Price: $114.45 -0.79%
Rating Summary:
24 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS upgraded NRG Energy (NYSE: NRG) from Neutral to Buy. PT unchanged at $26.
UBS analyst said, "Pullback offers low ~20% FCF yield; solar selldown to improve cash positive - We are upgrading NRG to Buy in light of the company’s above peer FCF yield with a substantial buyback in February, we see shares as having been disproportionately sold. Further a 49% sale of its solar business is anticipated to yield at least ~$550 Mn in value, bolstering its $1.4 Bn YE ’11 cash position."
"We believe 3Q results should prove particularly robust following the extreme heat in Texas. Furthermore, we believe upside from EPA’s latest CSAPR rules are not yet fully reflected in TX power forwards; heat rates in ’12 and ’13 have declined to trough levels seen prior to the rules proposal of late."
UBS raises FY11 EPS from $0.96 to $1.13, but lowers FY12 from $2.16 to $1.41.
To see more ratings changes on NRG, Click Here
UBS analyst said, "Pullback offers low ~20% FCF yield; solar selldown to improve cash positive - We are upgrading NRG to Buy in light of the company’s above peer FCF yield with a substantial buyback in February, we see shares as having been disproportionately sold. Further a 49% sale of its solar business is anticipated to yield at least ~$550 Mn in value, bolstering its $1.4 Bn YE ’11 cash position."
"We believe 3Q results should prove particularly robust following the extreme heat in Texas. Furthermore, we believe upside from EPA’s latest CSAPR rules are not yet fully reflected in TX power forwards; heat rates in ’12 and ’13 have declined to trough levels seen prior to the rules proposal of late."
UBS raises FY11 EPS from $0.96 to $1.13, but lowers FY12 from $2.16 to $1.41.
To see more ratings changes on NRG, Click Here
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