FirstEnergy downgraded to Underperform at BofA with another EPS reset expected

As previously reported, BofA analyst Julien Dumoulin-Smith downgraded FirstEnergy (FE) to Underperform from Neutral with a price target of $38, down from $41. With another EPS reset expected, followed by elevated regulatory activity, the analyst expects shares to lag in 2023. Many the firm talks to view FirstEnergy as the next CenterPoint Energy (CNP), but the latter was able to re-rate with new leadership and attractive utility assets and BofA does not believe FirstEnergy "is the next CNP," the firm stated.