Wunderlich Lowers Estimates On NRG Energy

Wunderlich Securities has published a research report on NRG Energy Inc. (NYSE: NRG) and has reduced 2011/2012 EBITDA estimates as well as the price target.

In the report, Wunderlich writes "Last week, NRG Energy (NRG) reduced its adjusted EBITDA guidance for 2011 based on the termination of the proposed gas-fired asset acquisition from Blackstone (BX-NR) and Dynegy (DYN-NR). NRG reduced '11 EBITDA guidance by $150 million to a revised range of $1.75-$1.95 billion (recall earlier company guidance included the benefit of all proposed acquisitions). Based on the disclosure, we are reducing our EBITDA estimates by $150 million, leaving our revised '11 and '12 EBITDA estimates at $1.831 billion and $1.821 billion, respectively. We are also reducing our target price to $24 per share. We maintain our Buy rating and continue to like NRG's leverage to improving power prices in 2011."

Wunderlich maintains its Buy rating and has lowered the price target from $26 to $24.

NRG Energy closed Friday at $19.62.