Tuesday, September 21, 2010

Citigroup (NYSE:C) Says Comverge Likely (Nasdaq:COMV) Target

The recent announcement that Constellation Energy (NYSE:CEG) would be acquiring CPower has Citigroup (NYSE:C) thinking Comverge (Nasdaq:COMV) could very well become a takeover target.

Comverge has plummeted in value in just a couple short months, dropping at times almost 40 percent since the latter part of July.

The inability to control operating costs has been the major problem with Comverge, and if a company were to acquire them with the will and ability to cut costs, said Citigroup, they would probably be able to turn that around.

Possible suitors according to Citi are Progress Energy (NYSE:PGN), RRI (NYSE:RRI), Allegheny Energy (NYSE:AYE), Calpine (NYSE:CPN), or even Constellation Energy.

Citi maintains their "Hold" rating on Comverge, while dropping their price target from $13 to $8 a share. Comverge closed Monday at $6.90, gaining $0.30, or 4.55 percent.

Volume was almost four times the 3-month average of 153,639, ending the day at 605,402.

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