25 Apr

NRG Energy Stock: The Word on Wall Street

WRITTEN BY Vineet Kulkarni

Analyst price targets

Based on consensus estimates, NRG Energy (NRG) stock has a target price of $47.0, which indicates an upside potential of almost 14% against its current price of $41.4 over the next 12 months. Morgan Stanley raised NRG’s target price from $46.0 to $47.0 last week.

NRG Energy Stock: The Word on Wall Street

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Among the 11 Reuters-surveyed analysts tracking NRG Energy, three recommended a “hold,” four recommended a “strong buy,” and four recommended a “buy” while none recommended a “sell” as of April 25.

Peer price target

Among the ten analysts tracking AES (AES), five recommended a “hold,” one recommended a “sell,” and four recommended a “buy.” Analysts’ median target price of $18.1 for AES implies a potential upside of ~2%, compared to its current market price of $17.7 over the next 12 months.

Conclusion

Despite a discounted valuation compared to peers, NRG Energy stock seems to be a risky bet at the moment. Generally, investors take shelter under safe-haven utility stocks (XLU) in search of dividends when the broader markets are rough. NRG Energy’s earnings outlook and financials have improved over the last few years. However, its petty dividends and relatively volatile stock movements make it an exception among utilities.

Check out my weekly review of utilities in Analyzing Utilities’ Charts, Valuation, Price Targets, and More.

Latest articles

23 Jul

Will Fortinet Beat Q2 Earnings Estimates?

WRITTEN BY Aditya Raghunath

Leading cybersecurity company Fortinet (FTNT) is scheduled to announce its second-quarter earnings results on August 1. What should we expect?

Harley-Davidson’s Q2 earnings were slightly better than estimates.

Netflix (NFLX) has long relied on international markets to drive its streaming video business growth.

23 Jul

Could Ford’s Q2 Earnings Push Its Stock Even Higher?

WRITTEN BY Mohit Oberoi, CFA

Ford's second-quarter earnings results are scheduled for release on July 24. So far, Ford stock has outperformed its legacy peers.

23 Jul

Why RBC Isn't Optimistic about BlackBerry Stock

WRITTEN BY Aditya Raghunath

Shares of BlackBerry (BB) have been volatile over the last 12 months. BlackBerry stock fell 40.5% from $12.0 in September 2018 to $6.57 in December.

According to a Wall Street Journal report, Apple (AAPL) could be interested in buying Intel’s modem chip business.