Bank of America has upgraded FirstEnergy (FE, Financial) from an Underperform to a Neutral rating while raising its price target for the stock from $42 to $45. This change comes amidst anticipation surrounding new legislation in Ohio, which presents some immediate transition risks. However, the financial institution posits that the potential negative impacts from Ohio's rate cases are already reflected in the stock’s current valuation.
Looking forward, Bank of America expresses optimism regarding the long-term effects of Ohio's legislative changes on FirstEnergy's regulated business, suggesting they could ultimately be beneficial. Despite minimal expected rate relief from Ohio factored into the earnings projections, FirstEnergy's financial guidance remains steady, according to the firm.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for FirstEnergy Corp (FE, Financial) is $43.26 with a high estimate of $47.00 and a low estimate of $39.00. The average target implies an upside of 1.29% from the current price of $42.71. More detailed estimate data can be found on the FirstEnergy Corp (FE) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, FirstEnergy Corp's (FE, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for FirstEnergy Corp (FE, Financial) in one year is $44.02, suggesting a upside of 3.07% from the current price of $42.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the FirstEnergy Corp (FE) Summary page.
