UPDATE: ISI Group Raises Target on FirstEnergy to $50
ISI Group raises its price target $3 to $50 on Buy-rated FirstEnergy (NYSE: FE) as the company remains the best utility lay to tightening power markets.
ISI Group notes, "Shares of FE have weathered concerns over earnings pressure from low gas/power prices better than other diversified names with the stock up 1.3% YTD vs. (3.7%) for the Diversified peer group. So while we are a bit late in coming back to this name we feel the risk/reward is still extremely favorable, with FE representing the best way to get “paid to wait” with a 5.0% dividend yield for the impact of tightening power markets while holding a call option on rising power/gas prices."
FE closed at $44.34 a share on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.