Wunderlich Securities Reiterates Buy on Calpine Corporation

Wunderlich Securities reiterated its Buy rating on Calpine Corporation CPN. In a research report published today, Wunderlich provided color on the company's settlement of its largest remaining bankruptcy proceeding. In the report, Wunderlich states, "On Thursday, Calpine Corporation (CPN) announced the settlement of the CalGen Third Priority claims in the bankruptcy proceeding (CPN emerged from bankruptcy on January 31, 2008). This was the largest remaining claim from the proceeding. If approved by the bankruptcy court, the settlement provides for $110 million for this claim. The amount will be funded out of a reserve of 44 million common shares, held for unresolved claims and unsecured creditors. It is important to note that these shares are already outstanding for accounting purposes, so the impact is limited to potential liquidation of the shares that will be issued for the claim. We continue to have a Buy rating on Calpine." At the moment, Wunderlich has a price target of $18 on the company's stock. On Thursday, Calpine lost 1.29% of its value to close the day at $15.30.