Wells Fargo Initiates FE Coverage With A Market Perform Rating

Wells Fargo is initiating coverage on FirstEnergy Corporation (NYSE: FE) with a Market Perform rating.

“Our 12-18 month valuation range of $41-42 is primarily derived from our sum-of-the-parts analysis ($22-23/share Regulated & Parent and $17-20/share Unregulated),” Wells Fargo writes.

“Our 2010-14 EPS estimates are $3.70, $3.10, $2.85, $2.75 & $3.60. Our neutral rating reflects a tepid intermediate-term EPS outlook and weakening financial profile in light of the current power price environment.”

FirstEnergy Corporation closed Tuesday at $37.89.