CPYYF - NRG Energy: Don't Get Too Excited About The Acquisition In The Medium Term

• NRG Energy is one of the largest utilities in the country and is in the process of making an acquisition that will almost double its size.
• Both management and analysts do not expect any significant earnings growth from this acquisition.
• Consumption of electricity as a whole is expected to be nearly flat going forward, limiting any real growth from electrification.
• NRG is one of the most levered companies in the industry but management appears to want to address this next year.
• The company is reasonably valued relative to peers but the lack of forward growth means that better values may be found elsewhere.

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