- FirstEnergy (FE +0.7%) is upgraded to Overweight from Equal Weight with a $37 price target at Barclays after the Ohio Public Utility Commission granted FE $204M in rate relief for three years, a figure the company found disappointing.
- Barclays says the Ohio rate relief was above expectations, meaning equity needs are lower to achieve the 14%-14.5% FFO/debt required for investment grade; the firm also likes FE’s 4.5% dividend yield, which it believes is sustainable.
- Upcoming catalysts for FE include a likely Pennsylvania rate settlement followed by guidance at the Edison Electric conference on Nov. 6, the firm says.