UPDATE: Deutsche Bank Cuts PT to $42 on FirstEnergy on Plans for New Equity Issue
Deutsche Bank maintained FirstEnergy (NYSE: FE) with a Hold rating and lowered the price target from $43.00 to $42.00.
Deutsche Bank commented, "Equity for growth leaves questions unanswered in challenging transition year. FE reported in-line Q4 EPS, in part due to a net positive impact from Hurricane Sandy, and reaffirmed 2013 operating EPS guidance. The stock declined as FE disclosed plans to issue up to $300M of equity in late 2013. Equity needs should not be a complete surprise and a modest $300M is only about $0.05/sh dilutive to EPS. However, mgmt's linkage of equity to growth projects was a negative surprise for investors who have been more focused on potential equity needs in the event of an unfavorable outcome on asset sales."
FirstEnergy closed at $39.56 on Monday.
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