UBS Maintains a 'Neutral' on Dynegy (DYN); Clarity on Recapitalization Timing

UBS maintains a 'Neutral' on Dynegy (NYSE: DYN) price target of $0.60 (from $0.35).

Analyst, Julien Dumoulin-Smith, said, "Schedule in DYN re-emergence clarified; mgmt targeting October 1st...Key date: July 2nd disclosure statement hearing and opening of solicitation...We are raising our Price Target reflecting a 10x EBITDA multiple on GasCo and ~$550/kW on its CoalCo assets, net of market value of DYN’s unsecured notes. The increase is due primarily to the application of a $/kW valuation framework on Dynegy's coal assets. We are adjusting our EBITDA estimates for the company, raising them in 2012 ~8% and modestly reducing them in 2013-14 following recent changes to market forwards."

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 $0.58 yesterday.

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