
NRG Energy (NRG) Stock Forecast & Price Target
NRG Energy (NRG) Analyst Ratings
Bulls say
NRG Energy's positive outlook is supported by a significant year-over-year EPS growth of 45%, driven by strong demand and favorable market conditions, with FY25 EPS exceeding guidance by nearly 8%. The company's Free Cash Flow before Growth (FCFbG) improved to $2,062 million for the year, reflecting a robust 54% Free Cash Flow conversion, highlighting strong operational efficiency. Additionally, NRG's strategic acquisitions, including Vivint Smart Home and the impending LS Power asset acquisition, position the company to enhance its asset base and capitalize on growth opportunities, particularly with ongoing development projects that could further increase EBITDA and Free Cash Flow in the coming years.
Bears say
NRG Energy faces significant risks that could negatively impact its financial performance, including potential delays in the onshore and offshore wind markets, supply chain disruptions, and operational issues that could arise from managing its power generation fleet. The company's ambitious earnings per share compound annual growth rate (CAGR) target exceeding 10% relies heavily on growth projections in Smart Home services, which may not materialize as anticipated, thereby exerting pressure on customer acquisition and profitability metrics. Additionally, the company's reliance on expected power prices and the ongoing risks associated with regulatory changes and competition in its operational environment may further hamper its financial stability and valuation prospects.
This aggregate rating is based on analysts' research of NRG Energy and is not a guaranteed prediction by Public.com or investment advice.
NRG Energy (NRG) Analyst Forecast & Price Prediction
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