This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sector Snap: Analyst Adjusts Utilities View

NEW YORK (AP) ¿ Exposure to natural gas prices, debt levels and changing stock prices prompted a Jefferies & Co. analyst to raise his ratings on two electric utilities on Monday while lowering it on a third.

Analyst Paul Fremont upgraded Calpine Corp. to "Hold" from "Underperform," citing its stock price and its reduced exposure to natural gas. The power producer, which is based in San Jose, Calif., has been trading at a 10 percent premium to its peers, but Fremont believes this heightened value is warranted due to the company's long-term sales contracts which have mitigated exposure to fluctuations in commodity prices.

Fremont reaffirmed his 2009 earnings estimate of 35 cents per share and raised his 2010 estimate by 5 cents to 25 cents per share. Analysts polled by Thomson Reuters expect 2009 and 2010 profits of 29 cents per share and 30 cents per share, respectively.

Shares of Calpine rose 43 cents, or 3.9 percent, to $11.43 in morning trading.

Fremont raised his rating on Dynegy Inc. to "Hold" from "Underperform." He said its shares have reached a fair value. He also noted Dynegy, based in Houston, recently retired $420 million of notes due 2011, which he said should lower interest expense. He raised his 2010 profit estimate by 5 cents to 15 cents per share. Analysts expect a 2010 loss of 21 cents per share.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,034.66 -4.83 -0.03%
S&P 500 1,991.28 -1.09 -0.05%
NASDAQ 4,543.2680 +11.1640 0.25%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs