NRG: Wunderlich notes investor sentiment over the last few days in the electric utility and power sector has been dominated by the nuclear events in Japan at the Fukushima Daiichi power plant. They believe investors have painted the sector with an awfully broad brush, leading to sector underperformance. Though the nuclear situation in Japan is likely to drive higher costs for nuclear operators globally, they see limited similarities between the nuclear plants in Japan and nuclear plants in the U.S. Further, they strain to point out that U.S. nuclear operators have faced the events of the Three Mile Island nuclear accident in 1979 and the 9/11 terrorist attacks in 2001; both events caused significant review and enhancement of systems at U.S. nuclear power plants. Separately, the U.S. govt yesterday issued proposed rules to further limit emissions from coal-fired power plants. Their favorite investment idea for 2011, NRG Energy (NRG), should benefit from a slowing nuclear renaissance in the U.S.
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