UPDATE - UBS Downgraded NRG Energy (NRG) to Neutral; A Bit Less Cash

UPDATE - UBS downgraded NRG Energy (NYSE: NRG) from Buy to Neutral. Price target cut from $25 to $20.

UBS analyst said, "Given NRG’s disproportionate leverage to commodity price movements, and ATC 7x24 power and gas prices down across several regions, we are lowering our rating on NRG back to Neutral."

"While not formally launching its ’12 growth capex, mgmt launched an excess cash range of $575-775 Mn (beyond growth investments of $825 Mn); this is lower than we had forecasted due to greater cash deployment in ’11 and greater solar equity contributions in ’12. We view our $450/$300Mn repo assumptions in ’12/’13 as below Street expectations; we see 4Q capital allocation release as potential risk."

UBS raises FY11 EPS estimate fom $0.50 to $0.80.

To see more ratings on NRG, Click Here

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