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NRG Energy Inc (NYSE:NRG) is one of billionaire Lee Ainslie’s stocks with huge upside potential. Analysts believe NRG Energy shares could soar more than 58% over the next 12 months from the current level.

On May 21, Morgan Stanley raised its price target on NRG Energy Inc (NYSE:NRG) shares to $162 from $159 while keeping an Equal Weight rating on the stock. This action was part of the firm updating its price targets for utility stocks. In taking this step, Morgan Stanley noted that utilities underperformed the S&P’s returns for the month.

For NRG Energy, the price target upgrade comes as the management continues to execute a share repurchase program intended to return $1 billion to shareholders in 2026. The company also plans to distribute $407 million in dividends this year. NRG Energy’s total liquidity stood at $3.3 billion at the end of Q1 2026.

Commenting on NRG Energy’s outlook on May 6, CEO Robert Gaudette said demand for their product continues to grow. He added that the company is well-placed with the right people, assets, and platform to capitalize on the opportunity. The executive also noted that they are seeing momentum across the business and that they are well-positioned heading into the summer.

NRG Energy Inc (NYSE:NRG) generates and supplies electricity to millions of customers across North America. It generates electricity from plants powered by natural gas, coal, nuclear, wind, and solar. The company supplies electricity to residential and commercial customers in over 20 US states and parts of Canada.

While we acknowledge the potential of NRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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