NRG Energy (NRG) PT Raised to $51 at Guggenheim
Guggenheim analyst Shahriar Pourreza raised the price target on NRG Energy (NYSE: NRG) to $51.00 (from $50.00) while maintaining a Buy rating.
The analyst commented, "NRG delivered 2024 guidance above our expectations and reiterated the core components of its ongoing plan, including: significant ongoing buybacks through the foreseeable future, judicious growth, cost control execution, and ongoing retail margin expansion capture. On the buybacks in particular, the 2023 CAFA alone now includes $1.15B of repurchases (+~$150), with STP proceeds expected to turbocharge the remaining $950M to be repurchased between now and early 2024 – just under 10% of the current market cap. The key data points of the update were largely inline with the expectations we laid out in our upgrade note yesterday (link below), with management providing another consecutive quarter of supportive Smart Home KPIs alongside the 2024 EBITDA/FCF guide and 2024 CAFA. While there were some minor puts and takes on the total quantum of CAFA for 2023-2024 vs. our expectations heading into the print, we see the totality of the update as a strong bookend to the post-investor day marketing and plan socialization. Looking ahead, we continue to see room for incremental catalysts with the 4Q call, including potential disclosure enhancements and additional visibility into 2024 and beyond FCFbG upside. Reiterate BUY. Our PT moves from $50 to $51 as we update our 2024 estimate."