Credit Suisse downgrades FirstEnergy
Credit Suisse downgrades FirstEnergy, cuts price target as oversupply pressures prices
NEW YORK (AP) -- Shares of FirstEnergy fell Tuesday as Credit Suisse stripped the utility of its 'outperform' rating, seeing a glut of energy pushing down prices.
THE SPARK: Analyst Dan Eggers of Credit Suisse lowered FirstEnergy to 'neutral' and reduced its price target to $40, from $45.
THE ANALYSIS: Eggers still sees a number of positives for FirstEnergy Corp., including a potential increase in natural gas prices that could raise power prices. That, he said, could also mean that generator profitability will improve quicker, allowing investors to take advantage of FirstEnergy's leverage to higher power prices.
A representative for FirstEnergy did not immediately respond to an email seeking comment.
SHARE ACTION: The stock dropped $2.22, or 5.2 percent, to $40.40 in morning trading. The shares have traded in a 52-week range of $38.26 to $51.14. For the year to date, the stock is up 2.1 percent.
