Figma Shares Indicated To Open $105/$110
On Monday, Evercore ISI analysts raised the price target for FirstEnergy Corp. (NYSE: FE) to $47.00 from the previous $41.00, while maintaining an Outperform rating on the stock. The utility company, currently trading at $42.34 with a market capitalization of $24.4 billion, has shown strong momentum with a 7.57% year-to-date return. According to InvestingPro analysis, the stock is currently fairly valued based on its comprehensive Fair Value model. The revision comes amidst anticipation for the outcome of the Ohio rate case, which is significant for the company as it covers approximately 17% of FirstEnergy’s consolidated rate base. The company is currently in settlement discussions with hearings set to commence on May 5th. With a solid dividend yield of 4.2% and a remarkable 28-year streak of consecutive dividend payments, FirstEnergy has demonstrated consistent shareholder returns despite regulatory challenges.
The analysts believe a settlement could mirror the partial agreement seen in the Ohio Grid Mod II application. In parallel, legislative developments with FirstEnergy Ohio HB15 and SB2 could potentially phase out Electric Security Plans (ESPs) and introduce multiyear rate plans with forward test years, a change that could be beneficial for the company.
FirstEnergy’s management has successfully diversified its supply chain since the COVID-19 pandemic, which has reduced its tariff exposure to less than 0.2% of its $28 billion capital expenditure plan. This proactive approach has positioned FirstEnergy with minimal reliance on single-source suppliers. Moreover, the majority of the company’s operations and maintenance expenses are labor-related, further insulating it from tariff impacts.
Analysts at Evercore ISI expect any significant increase in FirstEnergy’s capital expenditure program to stem from increased investment opportunities rather than supply chain pricing pressures. The new target price of $47 per share is based on a 16.0x trading multiple applied to the firm’s 2027 earnings per share estimate of $2.92. Currently trading at a P/E ratio of 22.58x and maintaining healthy revenue growth of 8.03%, the company presents an interesting investment case. For deeper insights into FirstEnergy’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers detailed financial metrics and expert research reports covering 1,400+ US stocks. The analysts highlight FirstEnergy’s status as predominantly a Transmission and Distribution (T&D) utility, a subgroup they anticipate will outperform due to economic development concerns potentially affecting data center-driven generation investments. They also note FirstEnergy’s lower climate risk compared to many of its peers. Despite these advantages, the analysts justify the peer multiple given that FirstEnergy’s historical earnings per share growth has been slower than its peers.
In other recent news, FirstEnergy Corporation (NYSE:FE) reported a strong start to 2025, with first-quarter earnings surpassing analyst expectations. The company posted earnings per share (EPS) of $0.67, exceeding the forecast of $0.58, while revenue reached $3.8 billion, surpassing projections of $3.44 billion. This performance marks a continuation of FirstEnergy’s trend of exceeding analyst forecasts in recent quarters. Analyst Andrew Weisel from Scotiabank (TSX:BNS) responded to these results by raising the price target for FirstEnergy shares to $46.00, up from $44.00, maintaining a Sector Outperform rating. Weisel noted the company’s robust earnings and positive legislative changes in Ohio as key factors in the decision. FirstEnergy also reaffirmed its 2025 core EPS guidance, aiming for the top half of the $2.40-$2.60 range. The company plans a strategic capital investment of $28 billion through 2029, focusing on sustainable growth and infrastructure improvements. Despite a slight downturn in industrial load, FirstEnergy’s strategic investments and operational efficiencies continue to drive its performance.
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