$NRG

NRG Energy (NYSE: NRG) shares rose 5.69% on strong earnings and guidance. The company reported $1.12B in quarterly operating cash flow and $30.7B in annual revenue, but faces regulatory delays from FERC on PJM's Reliability Backstop Procurement plan, impacting near-term cash flow. Analysts adjusted price targets, with Morgan Stanley at $159 and Scotiabank at $162, while the average target remains around $191–$194. NRG is also focusing on AI-driven demand growth.

Constellation Energy and Vistra shares rose after deals with Google and a $4.2B Energy Department loan, respectively, boosting nuclear-power capacity. NRG also gained. Utilities sector remains down year-to-date due to rising Treasury yields, according to BTIG analyst Alex Kania.

PJM Interconnection, the largest US grid operator, suspended its emergency power auction for data centers after FERC criticized the plan. The auction aimed to address a 6.8GW power shortfall, with costs primarily borne by 67 million customers. FERC found the plan 'deeply flawed' and delayed it for five months. Goldman Sachs notes the suspension is 'net bearish' for independent power producers, with Talen (TLN) and Constellation (CEG) most exposed.

Shares of Constellation Energy (CEG), NRG Energy (NRG), and Talen Energy (TLN) fell after FERC delayed PJM's plan to secure more power for the U.S. grid, citing unresolved issues. CEG dropped 4.2%, NRG hit a 17-month low, and TLN declined 0.5%. TD Cowen noted the delay creates uncertainty for these companies, which have significant exposure to the PJM market.

Analysts updated ratings and price targets for several companies. Wells Fargo downgraded Ally Financial (ALLY) to Equal Weight, reducing its target to $42. Pinnacle Financial (PNFP) was upgraded to Overweight. Carvana (CVNA) saw its target cut to $90, while Fair Isaac (FICO) and Vistra (VTR) also had targets reduced.

Bloom Energy (BE), Vistra (VST), and NRG Energy (NRG) are involved in data center power expansion. Bloom's stock surged 235.7% YTD, while Vistra and NRG declined 12.6% and 39.0%, respectively. All reported Q2 adjusted EBITDA growth. Bloom benefits from faster deployment growth, Vistra from established nuclear and gas fleets, and NRG from gas generation but faces higher expenses.

Morgan Stanley reduced its price target for NRG Energy from $162 to $159 while maintaining an Equalweight rating, according to the company. NRG Energy's stock price is currently at $106.23, reflecting a 1.07% decrease. The adjustment is based on a weighted average of various ratings, including valuation and EPS revisions.

Raymond James highlighted three energy and utility stocks as top analyst favorites: Cheniere Energy (LNG exports, strong Q2 2026 earnings), Devon Energy (valuation gap, $5B buybacks, Q2 2026 beat), and NRG Energy (retail electricity, LS Power deal, Q2 2026 mixed results).

Emerald AI, Google, and Nvidia launched the AI Energy Management Alliance (AEMA) with 18 members. The alliance aims to make AI data centers flexible power users, supporting grid stability and faster connections. Flexible data centers could lower electricity rates and reduce grid strain, according to the Brattle Group. AEMA will advocate for policies rewarding flexible data centers, with proof-of-concept projects already underway.

Vistra (VST) and NRG (NRG) rose 0.9% and 1.6% respectively, while NuScale (SMR) fell 15.8% after UBS downgraded it, citing delays and financial risks. UBS questioned NuScale's commercialization timeline and customer commitments, leading to a broader nuclear sector selloff. Vistra and NRG benefited from their current earnings and diversified power strategies.