FirstEnergy upgraded to Neutral at BofA with Ohio risk priced in

As previously reported, BofA upgraded FirstEnergy (FE) to Neutral from Underperform with a price target of $45, up from $42. Pending Ohio legislation presents near-term transition risk, but the firm thinks Ohio rate case downside risk is priced in and believes Ohio legislation could prove to be a net positive to FirstEnergy’s regulated business long term, the analyst tells investors. Earnings estimates assume little Ohio rate relief and the firm still sees guidance as intact, the analyst added.