Lower Natural Gas prices have made Bank of America uncertain about NRG's future. This morning B of A downgraded shares of NRG Energy from BUY to NEUTRAL as they lowered their natural gas forecasts. With gas prices depressed B of A sees less upside in owning NRG shares and has set a new price target of $24 per share.
In my opinion, this is just a bump in the road for NRG. The Texas economy is going to be booming a year from now and by Memorial Day the Natural Gas Act will pass congress, leading to a long term uptrend in prices.
NRG will easily exceed $24 a share once the new nuclear plants are announced.
Although it's a setback for us, I'm not worried about this today. NRG was beginning to trend nicely, so the bast@rds at BofA had to downgrade: they want to buy shares cheaper as the trend up continues. GS does this kind of manipulation all the time.
We'll see 23 soon enough after this news shakes the weak hands out, which it is doing today; seems to be correcting now.