Deutsche Bank Comments on Q2 Results at Calpine

Deutsche Bank has published a report on Calpine Corporation CPN reporting on Q2 results. In the report, Deutsche Bank wrote, "CPN reported strong Q2 results but lowered its 2011 EBITDA guidance to the bottom of the range. The publicly announced auction of two gas plants was unsuccessful, removing a near-term catalyst and source of incremental cash. Mgmt language seemed to de-emphasize the potential for near-term buybacks, with greater focus on attractive development projects. The only clear near-term catalyst is now initial 2012 guidance (Q3 call), which we think may disappoint the market. We remain Hold given only modest near-term fundamental upside." Deutsche Bank rated Calpine a Hold with a price target of $17.00. Calpine closed Friday at $16.25.