Shares of NRG Energy (NRG) - Get Report were higher over 2% during Wednesday morning trading after an upgrade to "Buy" from "Neutral" with a $26.00 price target at Goldman Sachs.

"Despite NRG's shares rising more than 60% over the past six months, we see another 40%+ from here, as incremental visibility may emerge," Goldman analyst Michael Lapides noted.

Lapides cited several reasons for the upgrade today.

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Chiefly, cost management with reductions of roughly $180 million by 2018 and $250 million by 2019, the implementation of a "shrink and grow" strategy aimed at deleveraging, and a potential restructuring NRG's GenOn subsidiary.