Bank of America Reiterates Buy Rating on Calpine

Bank of America has published a report on Calpine (NYSE: 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.