Deutsche Bank Reiterates Buy on FirstEnergy

Deutsche Bank is out with its report today on FirstEnergy FE, reiterating Buy. In its report, Deutsche Bank writes, "Q2 EPS of $0.64/sh was below our $0.67 est and consensus of $0.72 on higher costs due to plant outages. The bottom end of the 2011 EPS guidance range was raised $0.10 to $3.30-$3.50/sh due to hot weather, progress on merger synergies, and greater visibility on FY results. FE reiterated its strong positioning for pending EPA rules, and we see FE as a big beneficiary of CSAPR given a net clean fleet in OH and PA. Reiterate Buy on medium-term earnings growth through both capacity and energy pricing upside, as well as our fundamental SOTP valuation." Shares of FE closed Tuesday at $44.12, down 1.58% from Monday's close.