Morgan Stanley Cuts NRG Price Target amid Sector Revisions

NRG Energy, Inc. (NYSE:NRG) is included among the 10 Best May Dividend Stocks to Buy.

Morgan Stanley Cuts NRG Price Target amid Sector Revisions

On April 21, Morgan Stanley lowered its price recommendation on NRG Energy, Inc. (NYSE:NRG) to $154 from $157. It reiterated an Equal Weight rating on the shares. The analyst said the firm is updating price targets across Regulated & Diversified Utilities and IPPs in North America under its coverage. In March, utilities outperformed the S&P 500.

During its Q4 2025 earnings call, management shared an updated long-term outlook. Lawrence Coben, CEO & Chairman of the Board, said the company was rolling its outlook forward and continued to target at least 14% annual growth in adjusted EPS through 2030. He added that the projection did not include any additional data center contracts or potential increases in power or capacity pricing.

Bruce Chung, EVP & CFO, reaffirmed the company’s 2026 financial guidance that had been announced earlier in the month. He noted that the guidance included 11 months of earnings from recently acquired generation assets, along with CPower. Based on the midpoints of the reaffirmed ranges, adjusted EBITDA was expected to reach $5.575 billion, adjusted net income to $1.9 billion, adjusted EPS to $8.90 per share, and free cash flow before growth to $3.05 billion.

NRG Energy, Inc. (NYSE:NRG) is an energy and home services company. Its business includes the sale of electricity and natural gas to residential, commercial, industrial, and wholesale customers. It also operates wholesale electric generation and sells smart home products and services.

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