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Investing.com - Barclays (LON:BARC) upgraded FirstEnergy Corp. (NYSE:FE) from Equalweight to Overweight on Monday, while raising its price target to $49.00 from $43.00. The utility company, currently trading at $43.79 and commanding a market cap of $25.3 billion, has maintained dividend payments for 28 consecutive years with a current yield of 4.06%.
The upgrade follows meetings between FirstEnergy’s C-Suite executives and investors in Los Angeles and San Francisco last week, where the company outlined its growth strategy and capital plans.
Barclays cited FirstEnergy’s undervalued management plan, which currently trades at an 11% P/E discount, noting that successful execution could lead to consensus earnings revisions and multiple re-rating through 2026.
The firm expects FirstEnergy to make positive steps to address legacy Ohio concerns by late 2025 through an inline General Rate Case outcome, while pressure on the capital plan from transmission and generation could drive the rate base CAGR to 10%.
Barclays also highlighted potential upside from upcoming West Virginia Integrated Resource Plan proposals, which could present approximately 2% EPS upside risk to current estimates that are already above consensus.
In other recent news, FirstEnergy Corp. reported its second-quarter earnings for 2025, meeting analysts’ expectations with an earnings per share (EPS) of $0.52. The company slightly exceeded revenue forecasts, reporting $3.4 billion compared to the anticipated $3.39 billion. These financial results were bolstered by new rates and investments in its distribution business. Following this performance, Mizuho (NYSE:MFG) raised its price target for FirstEnergy to $45 from $43, maintaining a Neutral rating on the stock. Similarly, Jefferies increased its price target to $45, citing a potential "clean path" to becoming more constructive on the stock if certain regulatory decisions align favorably. Both firms’ adjustments reflect a positive outlook on the company’s financial health. These developments highlight key factors influencing FirstEnergy’s market position and investor sentiment.
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