FirstEnergy 'Setting A New Baseline," Credit Suisse Notes

In a report published Thursday, Credit Suisse analyst Dan Eggers commented that FirstEnergy Corp.'s FE 2015 guidance, particularly at the utilities, was "disappointing" with higher than expected costs and known pressure on generation with a mid-quarter mark-to-market. However, Eggers added that he sees "something refreshing" in the disappointing guidance as the company provided numbers that appear "largely sensible" and don't feel like they were "stretching" to match guidance to the right number as has been done in previous earnings calls. "We think enthusiasm for FirstEnergy shares will require more confidence around important developments but encouragingly see the beginning of Chuck Jones' tenure as CEO focused on utility growth and managing expectations even when that means disappointing," Eggers wrote. Shares remain Neutral rated with a price target raised to $36 from a previous $31.