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.

Citigroup (NYSE:C) Increases Calpine (NYSE:CPN) Price Target

Citigroup Inc. (NYSE:C) said they increased their price target on Calpine Corp. (NYSE:CPN), based on "higher EBITDA estimates."

In a research note, analyst Brian Chin said, "We are updating our adjusted EBITDA estimate for 10 and 11 to $1,787 and $1,811 million, from $1,462 and $1,694 million, respectively and introducing our $1,847 million 12 [adjusted] EBITDA estimate. The majority of our estimate increase is due to higher utilization assumptions, Connectiv and improved O&M assumptions. We marked our model to market as of 9/8/10."

The price target for the company, which owns and operate power generation plants, was raised from $16.50 to $18.00.

Citigroup added they're maintaining a "Buy" rating on the company.