Bank of America Reiterates Buy Rating on Calpine

Bank of America has published a report on Calpine CPN covering 2Q earnings at the wholesale power company. In the report, Bank of America wrote, "We believe the reaction to CPN's revised 2011 adj. EBITDA guidance range of $1.7-$1.75 billion (previously $1.7 - $1.8 billion) and the lack of movement on repurchase of shares was overblown. We still see the longer-term positives that form the basis of our positive investment thesis on Calpine are very much in tact." Bank of America reiterated their BUY rating and gave Calpine a price target of $20.00. Calpine closed Friday at $16.25.