Deutsche Bank Maintains Hold on Calpine (CPN)

Deutsche Bank is out with its report today on Calpine CPL, maintaining Hold. In a note to clients, Deutsche Bank writes, "Results in 1Q11 were in line despite very weak generation levels as CPN likely benefited from being well hedged based on expected output. Gas-fired generation fell about 40% in CA, at least in part due to strong hydro, but we remain cautious on the CA market overall. We find CPN's assets and strategy to be compelling and see some addl' 2011 catalysts such as attractive asset sales and the beginning of share repurchases (expected later this year). That said, we see limited fundamental upside after the strong run since the end of Nov. (+38%)." Deutsche Bank has a $17 PT on CPN. Shares of CPN closed Friday at $16.75, up 2.45% from Thursday's close.