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Investing.com - Jefferies maintained its Hold rating on FirstEnergy Corp. (NYSE:FE) while raising its price target to $43.00 from $42.00 on Monday. According to InvestingPro data, the utility company, currently valued at $23.5 billion, trades at a P/E ratio of 21.6x and has maintained dividend payments for 28 consecutive years.
The research firm cited an improving risk-reward profile for FirstEnergy as Ohio regulatory decisions approach in late 2025. Jefferies expressed growing optimism about the company’s prospects despite maintaining its neutral stance. With a beta of 0.37, FirstEnergy demonstrates relatively low price volatility, making it potentially attractive for risk-averse investors.
FirstEnergy’s $28 billion Energize365 plan supports 6-8% earnings per share growth through 2029, according to the research note. The potential resolution of HB6 probes could drive multiple expansion for the utility company.
Jefferies also highlighted that FirstEnergy’s data center pipeline has doubled to 6 gigawatts, presenting strong transmission potential for the company. This growth comes despite near-term PJM capacity cost headwinds facing the utility.
The firm reiterated its Hold rating while acknowledging the increasingly positive outlook for FirstEnergy as it navigates regulatory developments and expansion opportunities in its service territories.
In other recent news, FirstEnergy Corp. announced a $2.15 billion convertible notes offering, with an option for an additional $350 million, aimed at repurchasing existing notes and refinancing debt. The company is also launching a $1.8 billion convertible notes offering to support similar financial strategies. In personnel developments, FirstEnergy appointed Karen Kinslow as Vice President of Pennsylvania Operations and Michael Auseré as Vice President of Financial Planning and Analysis, both bringing extensive experience in the energy sector. Meanwhile, BofA Securities lowered its price target for FirstEnergy to $44, maintaining a Neutral rating due to ongoing uncertainty surrounding the Ohio rate case. The firm projects FirstEnergy’s 2025 earnings per share to be $0.48, below the consensus estimate of $0.53. These recent developments reflect FirstEnergy’s strategic financial maneuvers and leadership enhancements.
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