UPDATE: Goldman Sachs Downgrades FirstEnergy Corp. (FE) to Sell

(Updated - July 26, 2016 9:55 AM EDT)

Goldman Sachs downgraded FirstEnergy Corp. (NYSE: FE) from Neutral to Sell with a price target of $31.00 (from $36.00), implying downside of 11%.

Analyst Michael Lapides said, "We downgrade FE to Sell on (1) below-consensus EPS estimates (by approximately 6%) for 2018, (2) greater-than-expected headwinds for FE’s non-regulated segment as above-market hedges expire, (3) balance sheet and credit risk as debt/EBITDA metrics at the non-regulated business weaken given lower earnings power, and (4) financing needs as we forecast $1.2bn in equity issuance in the next 2-3 years in order to maintain key credit metrics."

For an analyst ratings summary and ratings history on FirstEnergy Corp. click here. For more ratings news on FirstEnergy Corp. click here.

Shares of FirstEnergy Corp. closed at $36.60 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• WesBanco (WSBC) PT Lowered to $27 at Stephens
• Lennox International (LII) PT Raised to $510 at RBC Capital
• Chipotle Mexican Grill (CMG) PT Raised to $3,050 at Stephens