UPDATE: ISI Group Downgrades Calpine Corporation to to Neutral on Valuation. FCF

ISI Group downgraded Calpine Corporation CPN from Buy to Neutral and announced a $20.00 price target. ISI Group said, "CPN initiated 2013 Adjusted EBITDA guidance on its Q3 2012 earnings call (11/6/12). The $1.86 Bn midpoint of the range implies a ‘13 EBITDA multiple of 9.4x, among the highest in our Diversified / IPP coverage universe. In addition, CPN's leverage ratio of 5.2x Net Debt / ‘13 EBITDA is the highest in the sector. Based on today's closing price of $19.12, our $20 price target represents an expected total return of just 4.6%, below the 10% threshold for a BUY rating under ISI's rating system (implemented on 1/4/13)." Calpine Corporation closed at $19.12 on Wednesday.