Thursday, August 5, 2010

Allegheny Energy (NYSE:AYE) Downgraded by Barclays (NYSE:BCS)

Barclays (NYSE:BCS) downgraded Allegheny Energy (NYSE:AYE) from "Overweight" to "Equalweight, while increasing the price target from $23 to $24 a share.

"AYE stock is up 16% in the last month along with Power stocks and has been the best stock in our universe over that time period. The move reflected attention to the merger with FirstEnergy (NYSE: FE) (Equalweight) where the key milestones start happening in the next month, decision from PJM that the PATH transmission line ($1.4B) was necessary by mid-2015, and mean reversion," said an analyst from Barclays.

Estimates for earnings in the first quarter rose from $2.05 to $2.00, and for 2011, from $2.10 to $2.20, but for 2012 they were lowered from $1.80 to $1.69.

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