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In a report published Monday, analysts at Morgan Stanley initiated coverage of Dynegy Inc. (NYSE: DYN) with an Overweight rating and a price target of $41. The analysts believe that the company's cash flow yield and growth prospects are promising.
The analysts expect the Dynegy to be able to achieve 12 percent FCF/share CAGR during 2015-2020, with the possibility of share buyback worth $1.7 billion during 2015-2019, at the present commodity prices or about 40 percent of the company's current market cap. The FCF/share CAGR is likely to be driven by merger synergies and share buybacks, even if there is no improvement in commodity prices.
"Furthermore, if power, gas, or capacity prices rise in any of DYN's key markets, we forecast meaningful upside to cash flow and valuation. We see attractive risk-reward to shares at current levels," the analysts said.
"DYN has substantial leverage to any improvement in gas, power, or capacity prices across its key markets," Morgan Stanley added.
Latest Ratings for DYN
Date | Firm | Action | From | To |
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Apr 2015 | Morgan Stanley | Initiates Coverage on | | Overweight | Apr 2015 | Barclays | Maintains | | Overweight | Apr 2015 | Goldman Sachs | Initiates Coverage on | | Buy |
View More Analyst Ratings for DYN
View the Latest Analyst Ratings
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Dynegy Inc.
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CODE : DYN |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Dynegy is a producing company based in United states of america. Dynegy is listed in United States of America. Its market capitalisation is US$ 3.2 billions as of today (€ 3.0 billions). Its stock quote reached its highest recent level on December 29, 2000 at US$ 90.12, and its lowest recent point on April 27, 2012 at US$ 0.30. Dynegy has 131 350 008 shares outstanding. |