29 Mar

NRG Energy: Analysts’ Recommendations

WRITTEN BY Vineet Kulkarni

Analysts’ recommendations

Based on analysts’ estimates, NRG Energy (NRG) stock has a target price of $47.7, which suggests upside potential of more than 9% from its current price of $42.8 over the next 12 months. Morgan Stanley reinitiated its coverage on NRG Energy with an “equal weight” rating and a target price of $46.0 on March 26.

NRG Energy: Analysts’ Recommendations

Among the 11 Reuters-surveyed analysts tracking NRG Energy, four recommended a “strong buy,” four recommended a “buy,” and three recommended a “hold.” None of the analysts recommended a “sell” as of March 29.

AES 

Among the ten analysts tracking AES (AES), five recommended a “hold,” four recommended a “buy,” and one recommended a “sell.”

Analysts’ median target price of $17.94 for AES implies a potential downside of ~1% compared to its current market price of $18.1 over the next 12 months.

Conclusion

Despite being a component of the Utilities ETF (XLU), NRG Energy stock seems to be a relatively risky bet. NRG Energy’s earnings outlook and financials have improved over the last few years. The company’s valuation also looks appealing. However, NRG Energy’s petty dividends and relatively volatile stock movements make it an exception among utilities.

Usually, investors take shelter under safe-haven utility stocks in search of dividends when the broader markets are rough. American Electric Power (AEP) has been paying dividends for more than 108 consecutive years. To learn more read All You Need to Know about AEP’s Dividend Profile.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings

WRITTEN BY Adam Jones

On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.