Deutsche Bank Has Hold Rating On FirstEnergy (FE)

Deutsche Bank has a Hold rating and a $43 price target on shares of FirstEnergy FE after it updated guidance. In a note to investors, Deutsche Bank writes, "FE initiated post-merger 2011-13 EPS guidance of $3.20-$3.50/sh for each year, providing an upside surprise due to now higher synergy targets (the street expected lower). Positive FCF through '13 should enable FE to reduce debt and positions the company well for possible EPA spend and eventual power market recovery. However, the outlook is dependent on several assumptions which are difficult to reconcile and/or first require FE to execute on its plans. We are raising our '11-13 ests to $3.30, $3,20, and $3,20, and our PT to $43/sh. Maintain Hold." Shares of FE gained $2.40 yesterday to close at $42.02, a gain of 6.06%.