Citigroup upgrades TrustPower to 'hold'

Citigroup has upgraded its recommendation on power group TrustPower to "hold" from "sell".

It made the change after raising profit forecasts and the target price for TrustPower based on expectations for power generation, customer numbers, demand and retail tariff prices.

Citigroup increased TrustPower's net profit forecasts by 2 per cent to $93 million in 2007, by 10 per cent to $109 million in 2008 and by 6 per cent to $116 million in 2008.

Its new target price is $6.90, up from $6.42.

TrustPower last traded up 0.7 per cent at $6.85.

Last month TrustPower reported an 11 per cent increase in its consolidated operating surplus after tax to $81.4 million for the year ended March 31.

- REUTERS