UPDATE: Jefferies Raises PT to $48 on FirstEnergy; In-Line Q1
Jefferies raises its price target from $46 to $48 on Hold-rated FirstEnergy (NYSE: FE) following in-line Q1 operating earnings.
Jefferies notes, "1Q12 operating earnings of $0.82 were in line with consensus of $0.81. The company reaffirmed 2012-13 guidance. PJM concluded its reliability review of the ATSI zone requesting reliability must run contracts on five FirstEnergy coal units aggregating 885 MW and recommending transmission upgrade projects which will cost an estimated $700-$900 million. FE also plans to bid in new capacity of 800 MW in the upcoming capacity auction."
FE closed at $47.39 on Tuesday.
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