UPDATE: Deutsche Bank Initiates Dynegy with Sell on Unsupported Valuation
In a report published Tuesday, Deutsche Bank analyst Keith Stanley initiated coverage on Dynegy (NYSE: DYN) with a Sell rating and $17.00 price target.
In the report, Deutsche Bank noted, “DYN is a competitive generator that offers unique exposure to MISO through a long duration option on market recovery that has been enhanced by the recent refinancing and the pending AER acquisition. Mgmt is off to a strong start with an attractive strategy, and we see above-average M&A potential. However, our estimates are significantly below consensus and we find valuation to be unsupported even when using optimistic assumptions. If the AER deal closes, we would still need to assume MISO power prices that are 15-25% above market or MISO capacity prices north of $100/MW-day in order for DYN to trade in line with peers on EV/EBITDA and FCF yield.”
Dynegy closed on Monday at $21.35.
Latest Ratings for DYN
|Oct 2014||ISI Group||Upgrades||Neutral||Buy|
|Sep 2014||Deutsche Bank||Initiates Coverage on||Buy|
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