UPDATE: UBS Upgrades GenOn Energy (GEN) to Neutral; Price Reflects Capacity; Takeout Baked In
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Price: $2.87 --0%
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade GEN Now!
(Updated - June 13, 2012 11:15 AM EDT)
UBS upgraded GenOn Energy (NYSE: GEN) from Sell to Neutral. PT lowered from $1.75 to $1.50.
Analyst, Julien Dumoulin-Smith, said, "GEN shares are down nearly 44.8% YTD, dramatically underperforming the broader market and IPP peers Calpine (+0.7%) and NRG Energy (-16.3%). We believe much of this underperformance can be tied to PJM’s underwhelming capacity auction results for 2015/16 auction held in May; we believe forthcoming petitions filed by generators could yet support shares."
Still see “takeout” baked in: Our lower SOP is premised on an 8x 2015E EBITDA multiple. We explicitly add ~$100 Mn synergy benefit in a potential deal, reflecting widespread market expectations for an eventual transaction. Without the support of a potential transaction, we believe shares could trade between $0.50-$1.00/share"
For an analyst ratings summary and ratings history on GenOn Energy click here. For more ratings news on GenOn Energy click here.
Shares of GenOn Energy closed at $1.40 yesterday, with a 52 week range of $1.40-$4.14.
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UBS upgraded GenOn Energy (NYSE: GEN) from Sell to Neutral. PT lowered from $1.75 to $1.50.
Analyst, Julien Dumoulin-Smith, said, "GEN shares are down nearly 44.8% YTD, dramatically underperforming the broader market and IPP peers Calpine (+0.7%) and NRG Energy (-16.3%). We believe much of this underperformance can be tied to PJM’s underwhelming capacity auction results for 2015/16 auction held in May; we believe forthcoming petitions filed by generators could yet support shares."
Still see “takeout” baked in: Our lower SOP is premised on an 8x 2015E EBITDA multiple. We explicitly add ~$100 Mn synergy benefit in a potential deal, reflecting widespread market expectations for an eventual transaction. Without the support of a potential transaction, we believe shares could trade between $0.50-$1.00/share"
For an analyst ratings summary and ratings history on GenOn Energy click here. For more ratings news on GenOn Energy click here.
Shares of GenOn Energy closed at $1.40 yesterday, with a 52 week range of $1.40-$4.14.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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