Analyst upgrades independent power producers

Goldman Sachs analyst upgrades independent power producers on price improvements, demand

• On 10:38 am EDT, Tuesday September 29, 2009

SIOUX FALLS, S.D. (AP) -- A Goldman Sachs analyst upgraded independent power producers to "Attractive" from "Neutral" Tuesday based on expected improvements in spot commodity prices and an uptick in demand.

Analyst Michael Lapides said he expects power demand to improve as the gross domestic product and industrial production accelerate.

Lapides upgraded RRI Energy Inc. to "Conviction Buy," calling the stock the most unhedged name in the sector. RRI shares added 26 cents, or 3.7 percent, to $7.27 in morning trading.

He also reiterated his "Conviction Buy" rating on nuclear generator Entergy Corp., which lost 12 cents to $79.68 on Monday.

Goldman Sachs removed Great Plains Energy Inc. from the Conviction List but maintained its "Buy" rating. And it downgraded Portland General Electric Co. to "Neutral" from "Buy" due to recent share price performance and concerns about 2010 guidance.

Great Plains shares fell 31 cents to $17.86, while Portland General lost 27 cents to $19.82.