NEW YORK (TheStreet) -- UBS increased its target price on Dynegy (DYN - Get Report) to $18 and set a "sell" rating. The firm noted an earnings boost from capturing weather volatility and PRIDE benefits.
The stock was down 0.13% to $23.94 at 9:45 a.m. on Thursday.
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- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 108.6% when compared to the same quarter one year ago, falling from $1,053.00 million to -$91.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, DYNEGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- DYNEGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, DYNEGY INC swung to a loss, reporting -$3.59 versus $7.89 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$3.59).
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- Net operating cash flow has significantly increased by 197.72% to $43.00 million when compared to the same quarter last year. In addition, DYNEGY INC has also vastly surpassed the industry average cash flow growth rate of -7.87%.
- You can view the full analysis from the report here: DYN Ratings Report