Analyst Note| Charles Fishman, CFA |
We are reaffirming our $42 fair value estimate for FirstEnergy after President Joe Biden announced a $2.3 trillion infrastructure investment plan. Biden’s proposal calls for $100 billion to upgrade and expand the U.S. transmission system. However, passage of the plan could be challenging with Democrats holding only small majorities in the U.S. House and Senate. Even if Biden is unsuccessful in advancing his infrastructure plan, we believe the administration’s focus on infrastructure will bolster FirstEnergy’s transmission investment.