UPDATE: Jefferies Downgrades Calpine Corporation to Hold, Lowers PT on Concerns of Limited Pricing Upside

In a report published Monday, Jefferies analyst Paul B. Fremont downgraded the rating on

from Buy to Hold, and lowered the price target from $23.50 to $21.00. In the report, Jefferies noted, “We are lowering our rating to Hold from Buy based on concern that Texas pricing upside may be limited. Excluding potential upside from higher Texas power prices, Calpine appears to be fairly valued at current levels trading in line with other merchant generators on an EV/EBITDA basis. The expression of support by two PUCT commissioners for the establishment of minimum reserve margins in Texas provides additional upside to Calpine's EBITDA projections.” Calpine Corporation closed on Friday at $19.87.