The stock is up $1.53 (6.28%) to $25.89.
The group may be garnering attention faster than I anticipated in Monday's "Utilities: Getting Ready for the Up Move that Follows the Next Down Move".
Barclays is out upgrading Allegheny Energy (NYSE:AYE) to Overweight from Equal-Weight and adjusting their tgt to $40 from $35.
The firm believes the catalyst for AYE is an auction to price power in Pennsylvania beginning in 2011 with the first tranche results due 4/17.
- AYE is a lateral to the recent PPL 2010 Pennsylvania auction that priced power at $87/MWhr. The implication for AYE is a $68/Mwhr price including $7-$10/MWhr of basis which would confirm the consensus range of $4.12-$4.70. Barclays' new 2011E is $0.21/share higher at $4.45.......Notablecalls: So here you have a beaten down stock with a catalyst. Utility play with a close to 100% upside tgt should attract at least some attention....MORE