Deutsche Bank Upgrades FirstEnergy Corp. (FE) to Buy
- Euro and global stocks hold Italy-related gains ahead of ECB
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
- GoDaddy (GDDY) to Acquire Host Europe Group in ~$1.8B Deal
- Amazon (AMZN) Could Open Over 2,000 Brick-and Mortar Groceries if Tests Succeed - DJ; Kroger (KR) on Watch
- Trump's corporate tax holiday could spur pharma M&A
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Deutsche Bank upgraded FirstEnergy Corp. (NYSE: FE) from Hold to Buy with a price target of $37. Analyst Jonathan Arnold said its transition is underway.
"FE’s ongoing transition involves refocusing on regulated utility growth, while de-emphasizing merchant power. The path is not risk-free, but we see good value (>10% upside and 4.3% yield) and a decent entry point after relatively subdued reaction to recent regulated wins (Ohio ESP, PA settlement). Next Friday should bring an updated outlook and we expect FE to confirm that equity issuance – while substantial – will be lower than high estimates. While a Moody’s parent d/g may follow, implications for core regulated earnings are limited. Our $37 PT includes a sizable 5-10% execution discount on regulated, parent EPS and no net merchant value given competing puts and takes," said Arnold.
Shares of FirstEnergy Corp. closed at $33.34 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Upgrades TripAdvisor (TRIP) to Hold
- Crocs (CROX) PT, Estimates Trimmed at Susquehanna
- Benchmark Remains Bullish as Marcus Corporation (MCS) Announces Wehrenberg Theaters Acquisition
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesDeutsche Bank, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!