FirstEnergy initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of FirstEnergy with a Buy rating and $45 price target. The analyst expects the company to grow earnings at an above-average pace, modeling rate base growth of 8% on average and earnings growth of 8% on average through 2027. This is driven in part by FirstEnergy’s significant leverage to transmission, the analyst tells investors in a research note. The firm views the company’s core business favorably, and expects investor sentiment to improve as the “external noise surrounding the stock is resolved.”