Goldman Sachs reinstated coverage of NRG Energy with a Buy rating and a $197 price target. The firm identifies the recent LS Power asset acquisition as the primary driver for the positive outlook.
This transaction doubles NRG’s generation capacity. The deal also creates a more balanced mix between the company's retail and wholesale operations.
Goldman Sachs anticipates significant upside from growing data center power demand. The firm also highlights exposure to rising power prices and expanded virtual power plant capabilities.
NRG’s robust free cash flow supports its ongoing capital return program. The stock has maintained strong performance over the past year.