Wednesday, August 4, 2010

Citigroup (NYSE:C) Lowers Constellation Energy (NYSE:CEG) Earnings, Price Target

The price target of Constellation Energy Group (NYSE:CEG) was slashed by Citigroup (NYSE:C) from $36 a share to $34 a share, said Citi analysts in a note to clients. Earnings per share were also knocked down in range.

“We are lowering our EPS estimates to $3.40 and $2.46 from $3.42 and 2.88, respectively. Our adjustments stem from marking to market and higher interest expense than prior forecasts. Our EPS assumptions include a YOY retail drag of a similar size as the analysis included in this note (we have higher margins, but lower volumes)," said analyst Brian Chin.

Constellation just sold its California geothermal facility, Mammoth, to Ormat Technologies for $72.5 million. Constellation had a 50 percent stake in the project.

There were no specifics as to what the capital would be used for, other than strategic priorities.

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