Dynegy upgraded at Deutsche Bank as risk/reward now balanced

|About: Dynegy Inc. (DYN)|By:, SA News Editor

Dynegy (DYN +6.4%) jumps as Deutsche Bank upgrades shares to Hold from Sell with a $7 price target, up from $6, following a ~30% decline since February's disappointing New England capacity auction results.

Deutsche Bank believes DYN's fundamental outlook remains challenging with persistently high leverage through its 2019 forecast horizon, but consistently negative investor sentiment towards power likely means that potentially negative data points - such as a disappointing PJM capacity auction next month - already are priced in.

The firm says DYN continues to chip away at its $2.1B 2019 maturity, considers M&A a persistent upside risk, and foresees no imminent existential threat to the company's equity value.