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Investing.com - Scotiabank raised its price target on FirstEnergy Corp. (NYSE:FE) to $51.00 from $49.00 on Friday, while maintaining a Sector Outperform rating on the utility company’s shares. The stock, currently trading at $46.52, has delivered an impressive 21.83% return year-to-date and is approaching its 52-week high of $47.99.
The price target increase follows FirstEnergy’s third-quarter earnings report, which showed earnings per share of $0.83, exceeding both Scotiabank’s estimate of $0.79 and the consensus forecast of $0.74.
Scotiabank cited FirstEnergy’s approximately 7%-8% EPS growth rate, which outpaces the peer average of about 6.5%, as a key factor behind its bullish stance, noting this growth doesn’t align with the company’s current 8% P/E discount relative to peers.
The bank highlighted impressive regulatory progress across all of FirstEnergy’s states, particularly in Ohio, and pointed to attractive investment opportunities in PJM transmission and West Virginia generation as growth drivers.
Scotiabank expects FirstEnergy to announce a significant capital expenditure increase of approximately 20% or more in February, which would support the high end of the company’s 6%-8% compound annual growth rate target.
In other recent news, FirstEnergy Corporation reported a strong performance in the third quarter of 2025, surpassing analyst expectations. The company posted earnings per share of $0.83, exceeding the forecasted $0.75, and marking a 10.67% surprise. Revenue also outperformed projections, reaching $4.1 billion compared to the anticipated $3.94 billion. Following these results, Mizuho raised its price target for FirstEnergy to $50 from $45, while maintaining a Neutral rating. Additionally, FirstEnergy increased its 2025 guidance midpoint by $0.03, from $2.50 to $2.53. These developments highlight significant financial performance and adjustments in analyst expectations for the company.
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