J.P Morgan Comments On NRG Energy Following Decision To Suspend Activity On New Reactors

J.P Morgan Comments On NRG Energy Following Decision To Suspend Activity On New Reactors Investors have been concerned about NRG Energy NRG spending some of its significant FCF on building two new reactors at its South Texas Project nuclear plant. The company's announcement today that it is suspending activity on the new reactors pending better regulatory visibility for new U.S. nuclear following the Japanese earthquake should help alleviate some investor fears, though recent relative stock performance implies much already priced in. J.P Morgan continues to recommend buying the stock. J.P Morgan believes the stock may have already reflected at least a slowdown in South Texas Project, if not an expectation that the project might be canceled. NRG shares have outperformed significantly since Friday 3/11, the day after the Japanese earthquake, rising 5.4% while the shares of the two largest nuclear operators slumped, with Exelon falling 6.4% and Entergy falling 10.9%. J.P Morgan believes NRG's strong FCF generation remains attractive. J.P Morgan has an Overweight rating on NRG Energy NRG closed Monday at $20.86