UPDATE: Deutsche Bank Raises PT on Calpine from $17.50 to $18.00
Deutsche Bank reiterated a Buy rating on Calpine (NYSE: CPN) and raised its price target from $17.50 to $18.00.
Deutsche Bank noted, “Q2 results were in line, and CPN tweaked 2012 guidance slightly higher at the midpoint. Mgmt clearly reiterated its core investment thesis that the value of CPN's existing CCGTs should rise as markets tighten and new build is required. We generally agree but see weak demand and market willingness to pay new and existing assets equally as key risks to the timing and ultimate benefit from market recovery. CPN remains bullish on power both in its message and in its actions, including a rapid pace of Q2 buybacks and its fairly unhedged position heading into 2013. We see near-term catalysts for the stock in market reform in TX, cap-and-trade in CA, and a Court decision on CSAPR.”
Calpine closed at $17.87 on Friday.
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Tags: Deutsche Bank