Goldman Sachs Upgrades Dynegy (DYN) to Buy

Goldman Sachs upgraded Dynegy (NYSE: DYN) from Neutral to Buy with a price target of $35.00 (from $31.00) based on a SOTP.

Analyst Michael Lapides expect the company to raise 2014 guidance in the coming months, given a strong start to the year.

The firm their EBITDA forecasts from $411m/$435m/$439m/$436m to $381m/$473m/$478m/471m in 2014- 17, partially on higher output levels for select gas generation units, slightly higher views on MISO power prices and partially on slightly lower contracted coal costs.

Lapides also said DAY is poised to either return capital to shareholders or participate in potential asset or corporate M&A. The stock ranks among their top names in M&A potential.

For an analyst ratings summary and ratings history on Dynegy click here. For more ratings news on Dynegy click here.

Shares of Dynegy closed at $26.68 yesterday.

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