UPDATE: Deutsche Bank Raises PT to $48 on FirstEnergy; Solid Q1, Reaffirmed Guide
Deutsche Bank says in a recent note that it raises its price target on FirstEnergy (NYSE: FE) from $47 to $48 as it reaffirms its Buy rating on shares.
Deutsche Bank notes, "FE reported solid Q1 results and maintained 2012/13 guidance despite mild weather. While we think the stock is closer to being fairly valued after recent strength, we see likely positive near-term catalysts in the RPM auction and a possible continuation of the recent gas rally. We think ATSI is reasonably likely to clear near the MOPR screen, which we believe would be viewed positively for FE despite high expectations given the tangible earnings uplift. FE's capacity upside story on top of its leverage to a recovery in energy markets creates a unique value proposition relative to other generators."
FE closed at $47.39 on Tuesday.
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