Raymond James Begins Coverage of NRG Energy (NRG) Stock, Gives Strong Buy

NRG Energy, Inc. (NYSE:NRG) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James began coverage of the company’s stock with a “Strong Buy” rating and price objective of $195. The analyst sees NRG Energy, Inc. (NYSE:NRG) as a standout independent power producer. The company blends one of the largest retail electricity presences in the US with the LS Power acquisition. It continues to expand its natural gas generation throughout critical markets and has raised its long-term adjusted EPS CAGR from 10% to 14%.

Raymond James Begins Coverage of NRG Energy (NRG) Stock, Gives Strong Buy

Aerial view of an oil rig illuminated against a night sky.

The firm’s analyst highlighted that NRG Energy, Inc. (NYSE:NRG) pulls impressive growth levers, including brownfield sites, gas turbine JV, among others. The growth comes while keeping intact financial flexibility with ~$1 billion in committed repurchases, added the analyst. NRG Energy, Inc. (NYSE:NRG) is also focused on taking advantage of the demand supercycle via the acquisition of assets from LS Power. The highly accretive transaction transforms its generation fleet and enhances the ability to serve customers. The company reaffirmed its 2025 guidance ranges for adjusted EPS and FCFbG (Free Cash Flow Before Growth Investments) of $6.75 – $7.75 and $1,975 – $2,225 million, respectively.

NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company.

While we acknowledge the potential of NRG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NRG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.