EBITDA And EPS Estimates Introduced On DYN, NRG

Dynegy Inc. DYN is having 3Q10E EBITDA and EPS estimates introduced by JP Morgan along with NRG Energy NRG showing forecasts that reflect progress from the companies. In the report, JP Morgan writes "Based on 3Q10 results from companies with exposure in similar regions, we believe both NRG and DYN could surprise to the upside. For example, PNM Resources' Optim Energy unregulated subsidiary reported strong unregulated results in Texas driven in part by higher ancillary services (Texas is the largest contributor to NRG's EBITDA), and Edison International's unregulated arm posted strong results in Illinois driven by realized prices that were about 10% higher in 3Q10 versus 3Q09 (Illinois is the largest contributor to DYN's EBITDA). We project NRG will earn $809 million of EBITDA in 3Q10 and Dynegy will earn $225 million of EBITDA in 3Q10." JP Morgan maintains its Neutral rating on DYN and $5 price target, while maintains its Overweight rating and $33 price target on NRG. Dynegy closed Friday at $4.64. NRG Energy closed Friday at $19.91.