
NRG Energy (NRG) Stock Forecast & Price Target
NRG Energy (NRG) Analyst Ratings
Bulls say
NRG Energy has demonstrated a robust financial performance, achieving a 45% year-over-year increase in earnings per share (EPS) for FY25, driven by strong demand and favorable market conditions. The company reported better-than-expected free cash flow (FCFbG) of $2,062 million for the year, reflecting a significant 54% conversion rate from adjusted EBITDA. Additionally, NRG stands to gain from the potential upside from various development projects and sites, which could enhance EBITDA and free cash flow further into the late 2020s and early 2030s.
Bears say
The outlook for NRG Energy's stock appears negative due to a combination of operational and market-related risks, including potential delays in key projects and ongoing supply chain disruptions that may hinder future growth. Additionally, the company's ambitious EPS CAGR target of over 10% requires significant growth from its Smart Home segment and raises concerns about escalating subscriber acquisition costs that could adversely impact cash flow after acquisition (CAFA). The operational risks tied to managing the power generation fleet, as well as regulatory changes potentially increasing operational costs, further compound concerns regarding NRG's ability to sustain profitability amidst a challenging market landscape.
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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