Courtesy of Benzinga.
Deutsche Bank upgraded Calpine Corporation (NYSE: CPN) Wednesday from Hold to Buy and raised its price target from $25 to $31.
Analysts led by Jonathan Arnold thought “CPN’s presence in the East, Texas and West provides geographic diversity and its exclusive reliance on natural gas as an input fuel cost, suggests that if natural gas falls further and pulls down power prices with it, CPN would be a relative winner in that environment, justifying its peer group 0.5x multiple premium.”
Arnold added, “CPN also possess a hidden gem in our view – the Geysers, a 725 MW renewable energy asset in California.”
The analysts expected “CPN will continue to maintain a disciplined investment focus, as recently highlighted by placing a hold on a potential Texas expansion. It will instead use its substantial cash flow generation to buy back shares, supporting substantial FCF/Share growth.”
Calpine recently traded at $21.18, up 5.27 percent.
Latest Ratings for CPN
Date | Firm | Action | From | To |
---|---|---|---|---|
Dec 2014 | Deutsche Bank | Upgrades | Hold | Buy |
Nov 2014 | Barclays | Maintains | Overweight | |
Oct 2014 | Jefferies | Maintains | Hold |
View More Analyst Ratings for CPN
View the Latest Analyst Ratings
Posted-In: Deutsche Bank Jonathan ArnoldAnalyst Color Upgrades Price Target Analyst Ratings