NRG Energy (NYSE:NRG) Faces Upside Risk if Gas Comes Back

Even though Deutsche Bank (NYSE:DB) seems some risk associated with NRG Energy (NYSE:NRG) because of their exposure to gas if it surges back, they still raised their rating on the energy company from "Sell" to "Hold," citing weak catalysts no longer a factor.

Deutsche said, "We upgrade NRG to Hold from Sell with the stock having dropped ~8% and lagged the market and IPP peers since mid-September (S&P 500 up 8%). Our key catalyst of weak initial '11 guidance has also now passed. While we are moving to Hold we remain cautious given a weak outlook driven by hedge roll-offs, continued overhang from the STP nuclear project, and a fundamental valuation of $19/sh or modestly below the current price. We do not find further downside potential to be enough, and see upside risk if gas rebounds and/or STP is cancelled."

NRG just finished the process of acquiring Green Mountain Energy Company for a cash deal of $350 million.

The company closed Friday at $20.10, gaining $0.17, or 0.85 percent. They have a market cap of a little over $5 billion.