UPDATE: Jefferies Upgrades Calpine; Raises PT

According to a research report published this morning, Jefferies has upgraded Calpine

from Hold to Buy, and increased PT from $18 to $21.50. Jefferies said in the report, "The company raised 2012 guidance following a strong first quarter result citing higher expected volume sales from its gas fleet and improving spark spreads. With the EBITDA estimates of most of Calpine's peers decling with lower gas prices we believe that Calpine is currently trading at a 15% EV/EBITDA discount to other merchant generators." Calpine closed Friday at $18.30.