UPDATE: Jefferies Lowers Dynegy Price Target To $5

According to Jefferies, Dynegy DYN is expensive at current levels based on its EV/EBITDA valuation absent unsecured debt refinancing. Jefferies said that in order for the stock to become attractive, it projected the current unsecured debt levels should be refinanced at 75 cents on a $1. “Our price target of $5.00 is based on our EV/EBITDA valuation approach using a 10.8 times multiple on 2015 unhedged EBITDA.” Dynegy closed yesterday at $4.36.