Wolfe Research downgraded FirstEnergy (FE) to Peer Perform from Outperform with a $38-$43 fair value estimate. The firm sees concerns on

FirstEnergy downgraded by Wolfe Research, seeing concerns on low-quality pension and coal earnings resurfacing, while the Ohio rate case remains an overhang.

The analyst noted that while the transition away from low-quality earnings is generally a positive move, it is concerning if FirstEnergy cannot identify adequate compensatory measures. This issue is particularly pronounced as most of the sector seems set to experience an upward trend in earnings outlooks,