UPDATE: Goldman Sachs Raises PT to $21 on Calpine Corporation on Solid Q2

Goldman Sachs reiterated its Buy rating on Calpine Corporation

and increased its price target from $20 to $21. Goldman Sachs noted, "After 2Q2012 reporting, where Calpine (CPN, Conviction Buy) reported adjusted EBITDA of $403mn versus GS/consensus of $400mn/$394mn, we update 2012-2015 EBITDA from $1.77/$2.10/$1.99/$1.90bn to $1.77/$2.12/$2.06/$1.93bn. Our higher estimates reflect (1) increased hedging levels, positive for 2014 EBITDA, (2) higher than previously assumed 2013-2015 EBITDA contribution from new California power plants and (3) modestly better-than-expected 2Q2012 results." Calpine Corporation closed at $17.87 on Friday.