On Thursday, Citi revised its price target for NET Power Inc. (NYSE: NPWR), reducing it to $8.00 from the previous $11.00, while keeping a Neutral rating on the stock. The adjustment follows an analyst day event where Citi representatives visited NET Power's La Porte demonstration facility and engaged with the company and its partners.
During the visit, the Citi team expressed admiration for the expertise of the teams working at the demonstration sites. However, they also noted an increase in perceived execution risk. This observation has led to the decision to lower the price target for NET Power's shares.
The analyst from Citi explained that the complexities involved in the company's operations had contributed to a reassessment of the risks. As a result, the higher cost of capital (CoC) was cited as a key factor in the decision to modify the price target.
NET Power, listed on the New York Stock Exchange under the ticker NPWR, specializes in low-carbon power generation technology. The company's demonstration facility in La Porte is a focal point for its efforts to showcase and validate its technology.
The new price target of $8.00 represents Citi's current valuation of NET Power Inc. based on the updated risk profile and cost of capital considerations. The Neutral rating indicates that Citi's outlook on the stock remains unchanged despite the revised price target.
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