Utilities
NRG is the best Cleantech equity in the market and is worth $250/share, according to one of MYST’s clients. Investors are “asleep at the wheel” with the “lazy” data centre derivative thesis. The future of Cleantech is data in the home, which allows NRG to use AI and ML to optimise power consumption / grid load. It has ~8m customers, more data than anyone could dream of and penetration of smart home devices is an easy cross-sell. NRG can shave 1-2% off their power demand at peak, which all falls to the bottom Line. This equates to $1-2bn of “pure margin” that will grow. Meanwhile, the company will generate “insane” FCF to fuel buybacks and incremental growth elsewhere.
Edition: 186
- 17 May, 2024