The shares of utility Allegheny Energy (AYE), which I first wrote about on May 25, 2009, at a price of $25, have moved slightly higher in the past three months, and the stock is still preferred at this juncture. Here's why.

Allegheny's fundamental story remains attractive. Look for Allegheny's 2011 revenue to increase 3% to 6% on customer growth, higher electric power rates and increased generation capacity.

The First Call FY2010/FY2011 EPS estimates for AYE are $2.14 to $2.20. The FY2011 EPS estimate looks about 5% low according to my analysis.

Thankfully, the chart of utility Allegheny Energy (AYE), which I first wrote about on May 25, 2009, at a price of $25, has started to heal.

The stock came too-close-for-comfort to the $17 sell/stop loss during the spring, sinking to about $18.95 in bear-hug fashion, prompting a stand-aside regarding considering additional shares.

But just when AYE looked like it would enter stop loss territory, the shares rebounded, and have trended up -- delightful news for all who maintained their position.

Today was a snow-recovery day where most were at work, but many businesses in the Atlantic Seaboard are still partially staffed. The weekly jobless claims managed to come down significantly, and it appears as though the appetite for risk is coming back as the Greece and other "PIIGS" issues may be closer to resolving, or are not as dire as many fear.

Here were today's unofficial closing bell levels:

Dow 10,144.19 +105.81 (1.05%)
S&P 500 1,078.47 +10.34 (0.97%)
Nasdaq 2,177.41 +29.54 (1.38%)

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Top Analyst Upgrades/Downgrades

Rare is the day that one should sell an electric power generation play. And the reasons are compelling:

Electricity via wind, solar, and nuclear generation is likely to play a larger role in energy as climate change reduction, then elimination, becomes a societal goal. Electricity also remains a potential propulsion source for cars, given that oil has apparently resumed its climb to uncomfortable levels.

Hence, I'm Reiterating my Buy rating for electric utility Allegheny Energy, Inc. (NYSE: AYE), first recommended on May 30, 2009 at a price of $25.00.

Readers of this space know that one of the preferred sectors is the electric power generation sector.

And it's preferred for a reason that may not be obvious to all. Electricity via wind, solar, and nuclear generation is likely to play a large role in energy as climate change reduction, then elimination, becomes a societal goal. Electricity also remains a potential propulsion source for cars, given that crude oil has apparently resumed its climb to uncomfortable levels. And with the above in mind, electric power generator Allegheny Energy (NYSE: AYE) is worth a review.

Analyst upgrades:

• Citigroup upgraded Lennar (NYSE: LEN) to Buy from Hold as it believes the company's near-term liquidity profile is improved following the $400M debt issuance. The firm raised its target price to $12 from $11.
• Jefferies upgraded Rowan Companies (NYSE: RDC) to Buy from Hold as it believes jack-up drillers will continue to outperform deepwater names. The firm raised its target price to $27 from $20.
• Keefe Bruyette upgraded First Financial (NASDAQ: FFIN) to Market Perform from Underperform to reflect more positive loan data for the Texas banks. The firm raised its target price on shares to $44 from $38.
• MGM Mirage (NYSE: MGM) was upgraded to Overweight from Neutral at JP Morgan.
• Morgan Stanley (NYSE: MS) was upgraded to Outperform from Market Perform at JMP Securities.
• Brinker (NYSE: EAT) was upgraded to Overweight from Equal Weight at Barclays.