NRG Energy price target raised to $42 from $40 at BMO Capital

BMO Capital analyst James Thalacker raised the firm’s price target on NRG Energy (NRG) to $42 from $40 but keeps a Market Perform rating on the shares. The analyst is positive on the company’s Analyst Day presentation where the management provided an updated financial outlook and capital allocation strategy that was better aligned with shareholder preferences. BMO adds however that investors are likely to continue to limit their overall exposure to the independent power sector and remain selective in their stock selection, giving preference to its peer Vistra (VST) based on its “traditional strategy and equally-attractive valuation”.