UPDATE: UBS Securities Downgrades Calpine Corporation to Neutral, Reiterates $22 PT on Concerns About Texas and California

In a report published Wednesday, UBS Securities analyst Julien Dumoulin-Smith downgraded the rating on

from Buy to Neutral, but reiterated the $22.00 price target. In the report, UBS Securities noted, “We're downgrading shares to Neutral from Buy following its latest move, and our concerns around TX (Guadalupe being potentially dilutive to '15 multiple) and CA. While developments in the Northeast are constructive, we see its more limited footprint and exposure to upcoming PJM capacity auction in (E)MAAC as less than ideal.” Calpine Corporation closed on Tuesday at $20.44.