Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
Investing.com - KeyBanc has downgraded FirstEnergy Corp. (NYSE:FE) from Overweight to Sector Weight, removing its previous bullish stance on the utility company. The stock, currently trading near its 52-week high of $47.66, has shown strong momentum with an 18% return over the past six months.
The downgrade comes as FirstEnergy shares have closed some of the valuation gap with the sector average compared to wire-only peers, according to KeyBanc analyst Sophie Karp. Trading at a P/E ratio of 21x and maintaining a 28-year dividend payment streak, InvestingPro analysis suggests the stock is currently trading above its Fair Value.
While KeyBanc acknowledged that FirstEnergy’s overall story has improved in recent years, the firm cited near-term concerns that could limit further upside potential.
The primary concerns include "the real prospect of another rate case filing in Ohio in the near term" that could create uncertainty for the company’s financial outlook.
KeyBanc also highlighted "rising risks in NJ" as an additional factor in its decision to reduce its rating on FirstEnergy stock.
In other recent news, FirstEnergy Corp. has announced amendments to its executive severance and change in control plans, set to take effect on January 1, 2026. These changes include severance pay for the CEO and certain executives, calculated at one and one-half times their base salary in specific involuntary termination scenarios. Additionally, the company declared a quarterly dividend of 44.5 cents per share, payable on December 1, 2025, to shareholders of record as of November 7, 2025. Barclays has upgraded FirstEnergy’s stock to Overweight, highlighting an undervalued growth plan, and set a new price target of $49.00. Jefferies and Mizuho also adjusted their price targets to $45.00, with Jefferies maintaining a Hold rating and Mizuho a Neutral rating. Mizuho’s adjustment followed FirstEnergy’s second-quarter earnings report, which showed Core EPS of $0.52, surpassing estimates of $0.49. This performance was attributed to new rates and investments in the company’s distribution business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.