UPDATE: ISI Group Upgrades FirstEnergy to Buy
ISI Group has published a research report on FirstEnergy (NYSE: FE) and has upgraded the company from Hold to Buy.
In the report, ISI Group writes, "We are upgrading shares of FE to BUY from HOLD and increasing our target price to $52/shr from $48.50/shr. FE EPS expectations are diminished near term due to recent declines in power forward prices, which on a “mark-to-market basis” put pressure on FE's earnings aspirations relative to their $3.20-$3.50/shr aspiration for '11-'13. However, we see the value proposition from earnings upside FE has to improvement in capacity prices in the next PJM auction, which we are confident is likely."
ISI Group has also raised the price target from $48.50 to $52 on FirstEnergy, which closed yesterday at $43.24.
