UPDATE: Bank of America Initiates NRG Yield at Buy on Significant Growth Potential

In a report published Monday, Bank of America analyst Brian Chin initiated coverage on NRG Yield (NYSE: NYLD) with a Buy rating and $36.00 price target.

In the report, Bank of America noted, “We are initiating coverage of NRG Yield with a Buy recommendation and $36 price objective. NRG Yield is among the first dividend growth-oriented companies listed in US equity markets to own, operate and acquire contracted renewable and conventional electricity generation and thermal infrastructure assets. We believe NRG Yield's business model has significant growth potential not only through additional asset drop-downs from its parent, NRG Energy, but also through external acquisitions of contracted assets that exemplify the clean evolution of highly contracted, new build electricity generating capacity in the United States.”

NRG Yield closed on Friday at $28.37.