Why One Analyst Thinks FirstEnergy's Ohio Challenges Aren't As Bad As They Look

BofA Securities analyst Julien Dumoulin-Smith upgraded FirstEnergy Corp (NYSE: FE) to a Neutral rating and raised its price target to $45. This reflects Ohio's regulatory transition risks, but the proposed framework may benefit FE's regulated business in the long term. Even if Ohio rates remain frozen until 2027, FE can offset a small EPS shortfall with $150 million in capex optimization.