UPDATE: Goldman Sachs Initiates FirstEnergy at Neutral Post Underperformance
Goldman Sachs initiated coverage on FirstEnergy (NYSE: FE) with a Neutral rating and a $44 price target.
Goldman Sachs noted, "We initiate coverage of FirstEnergy (FE) with a Neutral rating and a price target of $44, implying a modest total return of 2%. FE shares underperformed after FE withdrew 2013 guidance in August – our estimates appear largely inline for 2013, but 7% below consensus for 2014. In September, FE announced modest cost reductions – we assume FE expands this initiative and embed $150mn of incremental cost savings in our 2013 estimate, worth roughly $0.20-$0.25 in EPS and a positive catalyst when potentially announced in late 2012 or early 2013."
FirstEnergy closed at $45.20 on Thursday.
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