Wunderlich Continues To Buy NRG, Maintains $24 PT

NRG Energy (NYSE: NRG) announced yesterday its intention to write down its investment in new nuclear development in Texas, “and not invest any additional capital in the effort,” Wunderlich Securities reports.

“The decision will cause NRG to incur a pretax writedown of $481 million against first quarter earnings,” Wunderlich Securities writes. “Though the nuclear circumstances in Japan are tragic, we applaud NRG's decision. Nuclear development risk weighed heavily on the stock prior to 2011. With nuclear development behind them, we expect the company to focus on materially enhancing shareholder value creation. The company should report first quarter earnings in early May. We continue to have a Buy rating on NRG shares and a $24 target price.”

NRG Energy closed Tuesday at $21.88.