FirstEnergy rises as Jefferies initiates coverage with 'hold'

FirstEnergy

14/10/2024 12:21

** Shares of U.S.-based utility company FirstEnergy  FE.N 
rise ~2% to $43.45 premarket
    ** Jefferies initiates coverage of stock with "hold" rating
    ** New price target of $46 represents a 8% upside to the
stock's last close
    ** Brokerage says risk profile for FE will improve by 2024
end, after close of FirstEnergy Transmission sale, resolution of
SEC investigations, and reduced coal mine earnings from unit
Signal Peak 
    ** Says "FE has seen multiple credit upgrades from all three
agencies this year, on the back of its sale of an additional 30%
of FET to Brookfield for $3.5 bln"
    ** "We see downside risk to our forecast primarily from the
company not seeing sufficient improved utility earnings to
replace declining, lower quality earnings per share" - brokerage
adds
    ** 10 of 18 brokerages rate the stock "buy" or higher, 7
"hold" and 1 "sell"; their median PT is $46.50 - LSEG data
    ** As of last close, stock is up 16.50% YTD

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))