UPDATE: ISI Raises Ameren's PT

According to a research report published this morning, ISI has increased Ameren's

PT from $30 to $33. In the report, ISI said, "Ameren is growing through utility capital investments in Illinois, Missouri and independent transmission projects (

), while attempting to preserve optionality at its merchant Generating Company (Genco) by deferring capital investment decisions until at least Q1'13. We take the out of consensus view that while much of AEE's generation assets are not viable, an orderly exit from that business next year would drive modest upside in the stock. Market trepidation regarding the going concern status of Genco over the course of the next 12 months could provide an entry point. The stock offers a dividend yield of 5.1%." ISI maintains its Hold rating on Ameren, which closed yesterday at $31.47.