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Headquartered in Pennsylvania, Allegheny Energy, Inc. (AYE) is engaged in both regulated electricity and natural gas distribution utility operations, as well as in the unregulated wholesale energy markets.
Going forward, AYE's positive investment factors include increased power market prices, higher generation rates in Pennsylvania and Maryland, and recovery of purchased power expense in Virginia. These positive factors are partially offset by higher coal costs and a reduction in plant output.
Looking ahead, we expect that the company's regulated delivery utility business will provide steady earnings growth. Accordingly, we maintain a BUY recommendation on AYE common stock with a six-month target price of $37.50.
Read the full analyst report on AYE
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