NRG Energy earns Buy rating for Texas gas expansion

NRG Energy was upgraded to Buy after its transformative LS Power acquisition and new hyperscaler-focused BYOP project, signaling expanded power-generation capacity. The company’s 1.2 GW Texas gas plant, expandable to 5.4 GW, is secured by capacity-based power purchase agreements and asset-backed hedges, supporting long-term EBITDA growth despite higher capital expenditure and leverage. NRG trades at a deep discount to peers, with nearly 50% projected upside by 2027 at a 15x price-to-earnings ratio; risks include energy price spikes and capex overruns.