Wunderlich Maintains Buy On Calpine Corporation (CPN)

Wunderlich Securities is maintaining its Buy rating and $16 price target on shares of Calpine Corporation CPN. In a note sent to clients, Wunderlich writes, "We continue to see early signs of improvement in wholesale power markets, and reiterate our Buy rating on Calpine Corp. (CPN). Forward power prices for 2012 and 2013 in California and PJM have continued to improve slightly since mid-November, though Texas forwards have been flatter. With CPN's strong management team, leverage to improving prices, and the youngest large generation fleet in the industry, we continue to believe CPN is well positioned. Further, through asset sales and re-financings, the company has continued to increase its financial flexibility. We maintain our Buy rating and $16 price target on CPN shares." Shares of CPN gained 13 cents yesterday to close at $13.71.