J.P Morgan Downgrades Dynegy to Neutral (DYN)

J.P Morgan is out with a research this morning, where it downgrades shares of Dynegy Inc. to Neutral, from Overweight; it also lowered its price target to $5.00, from $10.00. The JPM analysts cited the fact that, after the “Go-Shop Period”, DYN came up with no competing bids to its deal with Blackstone Group BX. The analysts believe the shopping period was sufficiently long enough. The JPM analysts remarked, “In conjunction with our downgrade, we are cutting our December 2010 price target to $5 per share from $10 per share. We derived our $10-per-share PT by assigning asset values based on past transactions as well as our DCF methodology to Dynegy's assets; however, we are deriving our new $5 per share price target simply from the Blackstone bid for Dynegy at $4.50 per share, which we are rounding up to $5, consistent with our general view on rounding our estimates and price targets.”