UPDATE - UBS Initiates Coverage on FirstEnergy (FE) with a Neutral; Not Just Any Coal Generator
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Price: $47.18 -0.15%
Rating Summary:
16 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
16 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UPDATE - UBS initiates coverage on FirstEnergy Corp. (NYSE: FE) with a Neutral. PT $47.00.
UBS analyst says, "We see FE as the clearest beneficiary of the EPA’s CSAPR rules, due to take effect in 2012. We believe the rules will effectively squeeze out nearly all dispatch from unscrubbed generation in ‘12+, leaving meaningful upside to PJM West and AD Hub power prices, benefitting FE’s primarily scrubbed coal portfolio. Further, we anticipate FE will monetize ~$100 Mn in CSAPR extra allowances allocated through its auction next month, offsetting the ~9% drop in its output in ’12."
"We believe FE’s retail strategy is more conservative than peers, largely pursuing direct C&I and aggregation customers (minimal residential) as an avenue to market physical volumes in nearby markets. Underappreciated by the Street, we believe “smoothed” pricing will help mitigate 2012-14 volatility in capacity pricing. We look for aggregation/switching to accelerate in PA, IL, and OH in ‘12."
To see more ratings changes on FE, Click Here
UBS analyst says, "We see FE as the clearest beneficiary of the EPA’s CSAPR rules, due to take effect in 2012. We believe the rules will effectively squeeze out nearly all dispatch from unscrubbed generation in ‘12+, leaving meaningful upside to PJM West and AD Hub power prices, benefitting FE’s primarily scrubbed coal portfolio. Further, we anticipate FE will monetize ~$100 Mn in CSAPR extra allowances allocated through its auction next month, offsetting the ~9% drop in its output in ’12."
"We believe FE’s retail strategy is more conservative than peers, largely pursuing direct C&I and aggregation customers (minimal residential) as an avenue to market physical volumes in nearby markets. Underappreciated by the Street, we believe “smoothed” pricing will help mitigate 2012-14 volatility in capacity pricing. We look for aggregation/switching to accelerate in PA, IL, and OH in ‘12."
To see more ratings changes on FE, Click Here
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