Citigroup (NYSE:C) Increases Price Target on Allegheny Energy (NYSE:AYE)

Citigroup Inc. (NYSE:C) announced it has increased its price target on Allegheny Energy, Inc. (NYSE:AYE) from $20 to $24. Citi said they maintain their "Hold" rating on the company.

The recent recommendation from four proxy advisory firms for the proposed merger of FirstEnergy Corp. (NYSE:FE) and Allegheny to go forward has given both companies a boost.

Both boards of the companies have given unanimous approval, and the deal is awaiting shareholder approval.

Terms are a stock-for-stock transaction valued at $4.7 billion, which would close in the first half of 2011.