NRG Energy price target raised to $90 from $88 at BMO Capital

BMO Capital analyst James Thalacker raised the firm’s price target on NRG Energy to $90 from $88 and keeps a Market Perform rating on the shares. The firm cites the company’s positive announcements in independent power in raising its FY24 EBITDA midpoint outlook by 5%, with both operating cash flow and FCFbG – Free Cash Flow before Growth – also revised upwards by 5% with the implied FCFbG conversion ratio unchanged at 55-58%. BMO is also raising its 2024 EBITDA estimates by about 3.0% to $3,625M to reflect “higher sustainable load-serving margins”, the analyst tells investors in a research note.