UPDATE: Credit Suisse Cuts PT to $46 on FirstEnergy Following Equity Issuing Plans

Credit Suisse maintained FirstEnergy

with an Outperform rating and lowered the price target from $49.00 to $46.00. Credit Suisse commented, "FE disappointed expectations with plans to issue equity in late 2013; the disappointment is not because the equity is not prudent at this point in the cycle considering the much discussed balance sheet pressures, but because the decision came after considerable recent defense of not needing equity. … [W]e still view FE as a preferred way to gain Competitive Power market exposure with a strong dividend supported by Utility earnings, compelling leverage to a power market recovery, a mgmt track-record of finding ways to extract value in the down cycle and comparably attractive implied multiples with generation at 5.5x EBITDA in '15 vs peers at 7.0x." FirstEnergy closed at $39.56 on Monday.