Update: Citi Upgrading The AES Corp

Citi Investment Research is upgrading shares of The AES Corp (NYSE: AES) to Buy, and it is raising its price target to $16 from $14.

In a note to clients, Citi writes, "Our target price is now $16 from $14, predicated on a 11.3x target multiple, plus $1.76/share of value for NOLs, the DPL proposed acquisition, and cost saving opportunities. Our new EPS estimates are $1.14, $1.24 and $1.29 for 2011, 2012 and 2013, respectively. Our estimates exclude DPL for now. Simply stated, we are more confident in the thesis following the company's conference."

Shares of AES gained 27 cents yesterday to close at $12.93, a gain of 2.2%.