A 'Vivid,' Nuclear Opportunity Awaits Stock Investors As Analyst Points To A Recent Smart Home Acquisition

Shares of NRG Energy Inc NRG spiked in early trading on Monday, after losing more than 22% over the past six months.

Investors seem to have overlooked the earnings potential of the company’s “nuclear plus legacy Texas-centric retail business,” according to BofA Securities.

The NRG Energy Analyst: Julien Dumoulin-Smith upgraded the rating for NRG Energy from Neutral to a Buy, while raising the price target from $35 to $39.

The NRG Energy Thesis: The stock recently fell to its lowest since November 2020 and is trading lower than it was immediately after the Vivint acquisition, Dumoulin-Smith said in the upgrade note.

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Although the Vivint acquisition is not “the optimal use of capital,” it offers opportunities "to create incremental value via stronger cost control and cross-selling to NRG retail brands that are less price sensitive," the analyst stated.

The Vistra-Energy Harbor transaction also highlights the “latent nuclear+retail value,” which could contribute approximately $1.4 billion in adjusted EBITDA for NRG Energy in 2025, he added.

NRG Price Action: Shares of NRG Energy had risen by 7.56% to $33.86 at the time of publication Monday.

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