Citi Maintains Hold On AES (AES)

Citi Investment Research is maintaining its Hold rating on The AES Corporation AES and $15 price target. In a note to clients, Citi writes, "We are maintaining our 2010 FFO estimate at 84c and increasing our 2011 FFO estimate to $1.03 from 98c. While NOI has trended better than expected, the three equity raises this year have considerably diluted earnings. The current low level of leverage of ~44% will not last long however, as the company plans to continue to re-lever by acquiring $95-135m by the end of 2010, increasing leverage to ~50%. Although these acquisitions drive NOI growth into 2011, the increasing leverage level will delay the company's goal of achieving an investment grade rating." Shares of AES lost 21 cents yesterday to close at $12.11.