Showing posts with label FirstEnergy Corp. Show all posts
Showing posts with label FirstEnergy Corp. Show all posts
Friday, October 12, 2012
EnCana (ECA) (EMR) (FE) (NTi) (PXP) (WR) Ratings Initiations
EnCana Co. (ECA), Emerson Electric Co. (EMR), FirstEnergy Corp. (FE), Northern Tier Energy (NTi), Plains Exploration & Production Company (PXP) and Westar Energy, Inc. (WR) had ratings on them initiated by analysts.
National Bank initiated coverage on EnCana Co. (ECA). They have a "Sector Perform" rating and price target of $23.00 on the company.
Deutsche Bank initiated coverage on Emerson Electric Co. (EMR). They have a "Hold" rating and price target of $53.00 on the company.
Goldman Sachs initiated coverage on FirstEnergy Corp. (FE). They have a "Neutral" rating and price target of $44.00 on the company.
Deutsche Bank (DB) initiated coverage on Northern Tier Energy (NTi). They have a "Buy" rating and price target of $25.00 on the company.
BMO Capital Markets initiated coverage on Plains Exploration & Production Company (PXP). They have a "Outperform" rating and price target of $45.00 on the company.
Ladenburg Thalmann initiated coverage on Westar Energy, Inc. (WR). They have a "Neutral" rating and price target of $31.50 on the company.
Monday, October 18, 2010
Barclays (NYSE:BCS) Reiterates an "Equalweight" on FirstEnergy (NYSE:FE)
Barclays (NYSE:BCS) says it's maintining an "Equalweight" rating on FirstEnergy (NYSE:FE), citing WV merger recommendations as being not as constructive as hoped for.
Barclays said, "We prefer owning FE for its 5.7% dividend yield to Allegheny Energy (NYSE:AYE) ; (Equalweight rating) which we expect could go to $19/share on a deal break (12.3x our $1.55 in 2012). We view the WV recommendations as less than constructive as expected, but not insurmountable to merger approval. Regulated synergies are only 17% of the transaction post an equal sharing, but the Staff recommendation is more negative. Our forecasts show the deal to be accretive in 2013 at $3.19 versus $3.11 standalone."
FirstEnergy has also had problems keeping its gross margins at past levels, and have taken on more debt over the last several years, increasing their debt-to-equity ratio.
The energy company does have an ex dividend date on November 3, 2010.
They closed Friday at $38.93, gaining $0.28, or 0.72 percent. Barclays has a price target of $38 a share on them.
Barclays said, "We prefer owning FE for its 5.7% dividend yield to Allegheny Energy (NYSE:AYE) ; (Equalweight rating) which we expect could go to $19/share on a deal break (12.3x our $1.55 in 2012). We view the WV recommendations as less than constructive as expected, but not insurmountable to merger approval. Regulated synergies are only 17% of the transaction post an equal sharing, but the Staff recommendation is more negative. Our forecasts show the deal to be accretive in 2013 at $3.19 versus $3.11 standalone."
FirstEnergy has also had problems keeping its gross margins at past levels, and have taken on more debt over the last several years, increasing their debt-to-equity ratio.
The energy company does have an ex dividend date on November 3, 2010.
They closed Friday at $38.93, gaining $0.28, or 0.72 percent. Barclays has a price target of $38 a share on them.
Thursday, October 14, 2010
Allegheny (NYSE:AYE), FirstEnergy (NYSE:FE) Merger Opposed by PA Lawmakers
Opposition to the merger of FirstEnergy Corp (NYSE:FE) Allegheny Energy, Inc. (NYSE:AYE) from Pennsylvania lawmakers, especially Gov. Ed Rendell, who has, without proof, asserted the deal would be a killer of jobs in the state.
That's after FirstEnergy said there will be no jobs lost because of layoffs. There could be transfer of some jobs or workers may retire, but losses wouldn't come from company actions.
"Pennsylvania Gov. Ed Rendell called on the Public Utility Commission to deny the merger request with Allegheny Energy (NYSE:AYE) (Equalweight rating). In a release, Gov Rendell said the proposed deal could kill 980 good-paying jobs in southwestern PA. Gov. Rendell also stated concerns around increasing consumer costs and the lack of positive environmental effects, energy efficiency incentives, or increases in renewable energy. FE and AYE committed to work through the regulatory process in a response. To secure approval in Pennsylvania, a merger is required to show benefits...AYE is 9% undervalued including the 6% deal arbitrage and the dividend yield, but we see downside to $19 in a break," said Barclays (NYSE:BCS).
The deal is an $8.5 billion acquisition offer for Allegheny Energy Inc by FirstEnergy.
Allegheny closed Wednesday at $24.55, gaining $0.35, or 1.45 percent. First Energy ended the session at $38.89, gaining $0.54, or 1.41 percent Barclays had a price target of $38 on FirstEnergy.
That's after FirstEnergy said there will be no jobs lost because of layoffs. There could be transfer of some jobs or workers may retire, but losses wouldn't come from company actions.
"Pennsylvania Gov. Ed Rendell called on the Public Utility Commission to deny the merger request with Allegheny Energy (NYSE:AYE) (Equalweight rating). In a release, Gov Rendell said the proposed deal could kill 980 good-paying jobs in southwestern PA. Gov. Rendell also stated concerns around increasing consumer costs and the lack of positive environmental effects, energy efficiency incentives, or increases in renewable energy. FE and AYE committed to work through the regulatory process in a response. To secure approval in Pennsylvania, a merger is required to show benefits...AYE is 9% undervalued including the 6% deal arbitrage and the dividend yield, but we see downside to $19 in a break," said Barclays (NYSE:BCS).
The deal is an $8.5 billion acquisition offer for Allegheny Energy Inc by FirstEnergy.
Allegheny closed Wednesday at $24.55, gaining $0.35, or 1.45 percent. First Energy ended the session at $38.89, gaining $0.54, or 1.41 percent Barclays had a price target of $38 on FirstEnergy.
Friday, September 24, 2010
Credit Suisse (NYSE:CS) Upgrades Allegheny (NYSE:AYE) and FirstEnergy (NYSE:FE), Downgrades Entergy (NYSE:ETR)
Credit Suisse (NYSE:CS) took aim at the energy sector, raising the rating of Allegheny Energy (NYSE:AYE) and FirstEnergy (NYSE:FE) while downgrading Entergy Corporation (NYSE:ETR).
Allegheny Energy and FirsEnergy were upgraded from "Neutral" to "Outperform," and Entergy Corporation was downgraded from "Outperform" to "Neutral."
Allegheny closed Thursday at $23.54, gaining $0.29, or 1.25 percent. Volume was up over 30 percent from the 3-month average.
FirstEnergy closed at $37.39, up $0.32, or 0.86 percent. Volume for them was also much higher than the daily average.
Entergy closed at $76.40, falling $0.65, or 0.84 percent. Trading volume increased for them as well.
Allegheny Energy and FirsEnergy were upgraded from "Neutral" to "Outperform," and Entergy Corporation was downgraded from "Outperform" to "Neutral."
Allegheny closed Thursday at $23.54, gaining $0.29, or 1.25 percent. Volume was up over 30 percent from the 3-month average.
FirstEnergy closed at $37.39, up $0.32, or 0.86 percent. Volume for them was also much higher than the daily average.
Entergy closed at $76.40, falling $0.65, or 0.84 percent. Trading volume increased for them as well.
Wednesday, September 15, 2010
FirstEnergy (NYSE:FE) Downgraded by Jefferies (NYSE:JEF) on Allegheny (NYSE:AYE) Merger
FirstEnergy (NYSE:FE) was downgraded by Jefferies Group (NYSE:JEF) from "Hold" to "Underperform," citing the upcoming merger with Allegheny Energy (NYSE:AYE), which they believe will dilute the company.
Jefferies said, "... a reduction in our earnings estimates and expected dilution from the proposed merger with AYE. The decrease in power and natural gas prices makes FE and AYE transaction dilutive in the first full year of combined operations."
Earnings per share for 2011 were cut from $3.85 to $3.50 and 2012 earnings per share from $3.00 to $2.80.
The price target on FirstEnergy was also drastically cut, lowering it from $38 to $31.
FirstEnergy closed Tuesday at $36.71, falling $0.63, or 1.69 percent.
Jefferies said, "... a reduction in our earnings estimates and expected dilution from the proposed merger with AYE. The decrease in power and natural gas prices makes FE and AYE transaction dilutive in the first full year of combined operations."
Earnings per share for 2011 were cut from $3.85 to $3.50 and 2012 earnings per share from $3.00 to $2.80.
The price target on FirstEnergy was also drastically cut, lowering it from $38 to $31.
FirstEnergy closed Tuesday at $36.71, falling $0.63, or 1.69 percent.
Friday, September 10, 2010
Citigroup (NYSE:C) Increases Price Target on Allegheny Energy (NYSE:AYE)
Citigroup Inc. (NYSE:C) announced it has increased its price target on Allegheny Energy, Inc. (NYSE:AYE) from $20 to $24. Citi said they maintain their "Hold" rating on the company.
The recent recommendation from four proxy advisory firms for the proposed merger of FirstEnergy Corp. (NYSE:FE) and Allegheny to go forward has given both companies a boost.
Both boards of the companies have given unanimous approval, and the deal is awaiting shareholder approval.
Terms are a stock-for-stock transaction valued at $4.7 billion, which would close in the first half of 2011.
The recent recommendation from four proxy advisory firms for the proposed merger of FirstEnergy Corp. (NYSE:FE) and Allegheny to go forward has given both companies a boost.
Both boards of the companies have given unanimous approval, and the deal is awaiting shareholder approval.
Terms are a stock-for-stock transaction valued at $4.7 billion, which would close in the first half of 2011.
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