- Infrastructure investment is singled out by RBC analyst Shelby Tucker as an attractive sector heading into year-end, with FirstEnergy (FE +0.9%) as a top pick.
- If the 2014 purchased power agreement from Ohio's utilities gains approval, Tucker thinks it could add $150M-$200M of additional pre-tax income for FE's competitive energy services segment, and that the benefit to the company could translate to $0.15-$0.30 in EPS; the analyst says the outcome is not included in valuation models and estimates.
- Along with FE, Tucker rates NextEra Energy (NEE +0.6%) and PNM Resources (PNM +0.5%) as Outperform, with respective stock price targets of $39, $128 and $32.