UPDATE - Citi Downgrades FirstEnergy (FE) to Hold; Nice Run – Near Term Opportunity Closed
FE Hot Sheet
Rating Summary:9 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
UPDATE - Citi downgrades FirstEnergy Corp. (NYSE: FE) from Buy to Hold. PT $39.
Citi analyst says, "We are lowering our rating for FE to Hold which is strictly predicated on the material bounce in the share price since our upgrade on 6/3 – equating to a price change of ~10%...we specified that our upgrade for FE shares was not a long-term call on fundamentals, but rather a near term opportunity as shares at the time dislocated from the Midwest/PJM dark spread curve – opening a short term opportunity. That window of opportunity has largely closed. Key takeaway - we now advise investors to take a step back given that we remain cautious over the near term on forward dark spreads on the heels of a relative weak natural gas pricing environment."
"We continue to believe the pending FE/AYE merger is significantly accretive to Allegheny Energy (NYSE: AYE) shareholders and near term dilutive to FE shareholders. We remain cautious on integrated utilities and merchants overall and favor pure play defensive regulated utilities with high dividend yields. Our top pick in the integrated sector is NextEra Energy (NYSE: FPL).
To see all the upgrades/downgrades on shares of FE, visit our Analyst Ratings page.
FirstEnergy Corp. (FirstEnergy) is principally a holding company that holds, directly or indirectly, eight principal electric utility operating subsidiaries.
Citi analyst says, "We are lowering our rating for FE to Hold which is strictly predicated on the material bounce in the share price since our upgrade on 6/3 – equating to a price change of ~10%...we specified that our upgrade for FE shares was not a long-term call on fundamentals, but rather a near term opportunity as shares at the time dislocated from the Midwest/PJM dark spread curve – opening a short term opportunity. That window of opportunity has largely closed. Key takeaway - we now advise investors to take a step back given that we remain cautious over the near term on forward dark spreads on the heels of a relative weak natural gas pricing environment."
"We continue to believe the pending FE/AYE merger is significantly accretive to Allegheny Energy (NYSE: AYE) shareholders and near term dilutive to FE shareholders. We remain cautious on integrated utilities and merchants overall and favor pure play defensive regulated utilities with high dividend yields. Our top pick in the integrated sector is NextEra Energy (NYSE: FPL).
To see all the upgrades/downgrades on shares of FE, visit our Analyst Ratings page.
FirstEnergy Corp. (FirstEnergy) is principally a holding company that holds, directly or indirectly, eight principal electric utility operating subsidiaries.
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