Investing.com -- Citi has maintained its buy ratings on two Argentine power generation companies, setting a price target of $121 per ADR for Pampa Energia (NYSE: PAM) and $22 per ADR for Central Puerto (NYSE: CEPU), both with high-risk ratings.

The firm projects Pampa Energia's 2026 EBITDA at approximately $1.6 billion, representing a 55% year-over-year increase. The growth is expected to come from RDA's production ramp-up, which reached 22,000 barrels per day in May and is forecast to gradually increase to 28,000 barrels per day by the fourth quarter. Stronger power prices and contributions from TGS and Transener are also expected to support the company's performance. For 2027, Citi forecasts EBITDA of around $1.9 billion.

Citi views Pampa Energia's FertilPampa project positively, incorporating it into its upside price target with a contribution of $6 per ADR.

For Central Puerto, the firm projects 2026 EBITDA at $521 million, also up 55% year-over-year, following strong second-quarter results and upward revisions to price and gross margin estimates for the third quarter.

Citi noted that the second-quarter earnings season demonstrated the impact of reform measures on organic earnings growth in Argentina's power generation sector. The firm pointed to capital allocation as a key focus for Central Puerto, with the company's attention on oil and gas opportunities potentially diverting focus from its power business. A divestment of the company's mining and forestry assets could be positively received by investors, according to Citi.