Barclays Maintains an 'Overweight' on Calpine (CPN); Spark Spread Recovery Story

Barclays maintains an 'Overweight' on Calpine Corporation (NYSE: CPN), PT increased by $1 to $18.

Barclays analyst says, "We are fine-tuning our Adjusted EBITDA forecasts to $1.89B for 2012 and $2.18B for 2013 from $1.93B/$2.10B respectively. We also raised our target $1 to 18 which reflects an average of $19 for Open EBITDA and $16 for our asset valuation based on a DCF. Our 3-year peak valuation is $29, which reflects 20% annualized potential return. Our estimates now include the turbine program and higher hedges in the Southeast somewhat offset by higher plant operating expenses near term. Our EPS estimates are $0.17/$0.40/$0.77 for 2011-2013 versus $0.19/$0.42.$0.62 previously."

For more ratings news on Calpine Corporation click here and for the rating history of Calpine Corporation click here.

Shares of Calpine Corporation closed at $16.48 yesterday.

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