Research Alert: CFRA Lifts Opinion On Shares Of Nrg Energy, Inc. To Buy From Hold
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our 12-month target price is unchanged at $189, valuing shares at 19.2x our next-12-month EPS estimate of $9.86, slightly below IPP peers averaging 19.5x but significantly above NRG's highly volatile three-year historical forward average of 13.5x. We lower our 2026 EPS estimate by $0.31 to $8.84 but increase 2027 EPS by $0.34 to $11.34. We forecast NRG will grow EPS at a 16.3% CAGR in 2025-2030, significantly outpacing the Electric Utilities peer average of 7.6% (excluding NRG and CEG). However, NRG lags its closer IPP comparables, which we project will achieve even more robust growth rates: CEG at 17.2%, VST at 26.7%, and TLN at 49.3%. We believe this growth profile makes it an attractive proposition for growth-oriented investors willing to accept higher volatility. NRG has signed 445 MW of data center power purchase agreements and is targeting at least 1 GW of additional Bring Your Own Power deals in 2026, with discussions actively progressing. We see an attractive entry point with shares down ~13% YTD.