Morgan Stanley analyst David Arcaro downgraded NRG Energy (NRG) to Equal Weight from Overweight with a price target of $37, down from $47. The company’s announced acquisition of Vivint Smart Home (VVNT) brings a "new more challenging" business, more debt and limited free cash flow initially, Arcaro tells investors in a research note. The analyst thinks investors will need to proof of cross-selling upside before becoming more comfortable with NRG’s "new risk profile."
Published first on TheFly
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