MARKET TALK: Citigroup Upgrades Drax Group To Hold

16th Jun 2010 07:48

0648 GMT [Dow Jones] Citigroup upgrades Drax Group (DRX.LN) to hold from sell, and increases its target price to 405p from 395p. Says the upgrade is to reflect both the improving commodity price environment for UK coal-fired generators, and latest forward contracting positions and guidance. "UK forward gas prices have rallied strongly recently, with year forward gas up 29% since April, driving up the corresponding base load power price by 23%," it adds. Shares closed at 384p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 16, 2010 02:48 ET (06:48 GMT)