UBS: NRG Energy, Inc. (NRG) is a Buy on Compelling free Cash Flow, Strategic Positioning, and Differentiated Growth Drivers

Group 1 - NRG Energy Inc. is highlighted as a top stock pick by billionaire David Tepper, with UBS initiating coverage with a Buy rating and a price target of $211, citing strong free cash flow and strategic positioning as key factors [1][2] - The company boasts a 9% pro forma free cash flow yield, significantly higher than the 7% average yield in the Independent power producer sector, indicating strong financial health [2] - NRG's recent acquisition of natural gas generation facilities from LS Power, approved by FERC and NYSPSC, enhances its ability to provide innovative energy solutions [2][5] Group 2 - UBS identifies multiple growth drivers for NRG, including retail offerings, new-generation development opportunities, and smart home initiatives, projecting a 27% upside potential for the company's shares [3] - Raymond James has reiterated NRG Energy as a stock to watch, setting a price target of $223 following a recent sell-off of 13% to 14%, indicating confidence in the stock's recovery [4] - NRG Energy operates as a major integrated energy company in the U.S., generating and delivering electricity and natural gas, while expanding into smart home solutions through acquisitions like Vivint [5]