Oppenheimer Initiates Calpine At Outperform

Oppenheimer has published a research report on Calpine Corporation CPN and has initiated the company at Outperform. In the report, Oppenheimer writes "We are initiating coverage of Calpine with an Outperform rating and and a $16 price target. In our view, Calpine is well positioned to benefit from improving supply/demand dynamics in two of its four core markets (Texas and North) while protracted low gas prices should help its assets in the Southeast. California has historically provided the more stable cash flows, but the advent of large-scale renewables—assuming the state sticks to its renewables targets—could negatively affect Calpine. We are very intrigued by the possibility that management will be able to modify a restrictive $1.1 billion term loan near term; this would give Calpine more strategic flexibility, particularly in light of its CEO's prior achievements." Calpine Corporation closed yesterday at $12.78.