NRG Energy "We believe the current low gas price environment is overshadowing continued bullish pricing signals in Texas, where NRG is the state's second largest generator," Bank of America Merrill Lynch analysts wrote in a March 13 report. "Unlike CPN, which is a pureplay spark spread and more sensitive to 5x16 power prices which have recentlyimproved, we think 7x24 prices will eventually rebound once natural gas prices stabilize and benefit NRG. In addition, despite its greater hedge position we note NRG's disclosures as of 2/14/2012 indicate that a 1,000 btu/KWh change in heat rates results in $146 MM increase in 2014 EBITDA." Shares of NRG Energy hit a 52-week low Monday of $14.88. The stock's 52-week high of $25.66 was set on July 25. NRG Energy's forward P/E is 451.52; the average for conventional electricity companies is 30.91. For comparison, Nextera Energy ( NEE) has a lower forward P/E of 12.62. Eight of the 14 analysts who cover NRG Energy rated it buy. Five analysts gave the stock a hold rating and one rated it sell. The stock has fallen 3.87% year to date.
Penn Virginia "PVA continues to face funding concerns, which is causing it to slow down the core Eagle Ford program (dropping to 2 rigs from 3 rigs) and also preventing PVA from extending its asset base into liquids-rich plays (Mississippian Lime)," Credit Suisse analysts wrote in a March 2 report. "While we believe PVA will be able to close the projected funding gap of