FirstEnergy initiated with a Hold at Jefferies

Jefferies initiated coverage of FirstEnergy with a Hold rating and $46 price target FirstEnergy is a regulated electric transmission & distribution utility that operates in Ohio, Pennsylvania, New Jersey, West Virginia, and Maryland, notes the analyst, who still sees potential for goodwill-related risk in Ohio, but acknowledges that “the story has de-risked in 2024.” Despite the stock trading at about a 15% discount, and the fact that the firm is forecasting an above-average rate base CAGR and EPS growth rate compared to peers, it initiates coverage from the sidelines as it remains cautious and does not see the discount narrowing due to concerns around Ohio, the analyst tells investors.