FirstEnergy Corp. Rating Reiterated by Morgan Stanley (FE)
FirstEnergy Corp. (NYSE:FE)‘s stock had its “equal weight” rating reaffirmed by equities researchers at Morgan Stanley in a research report issued on Wednesday, ARN reports. They currently have a $35.00 target price on the stock. Morgan Stanley’s target price suggests a potential upside of 8.86% from the company’s current price.
The analysts wrote, “The dividend cut after the market close yesterday was not a surprise,” the report noted. “The 35% cut was about in-line with our expectation along with that of investors. The drivers of the reduction were largely due to weak PJM gas, power, and capacity prices that have been in decline the last few years. At the current level we believe the dividend is well supported by the regulated operations at a pay-out of ~60% of utility and parent EPS over the coming years, and the implied ~4.5% yield is in the range of peers.”
Several other analysts have also recently commented on the stock. Analysts at Credit Suisse cut their price target on shares of FirstEnergy Corp. from $35.00 to $33.00 in a research note to investors on Friday, January 17th. Separately, analysts at Citigroup Inc. downgraded shares of FirstEnergy Corp. from a “neutral” rating to a “sell” rating in a research note to investors on Friday, January 3rd. Finally, analysts at Wells Fargo & Co. upgraded shares of FirstEnergy Corp. from a “market perform” rating to an “outperform” rating in a research note to investors on Friday, December 27th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and two have issued a buy rating to the company. FirstEnergy Corp. presently has a consensus rating of “Hold” and an average price target of $39.35.
FirstEnergy Corp. (NYSE:FE) opened at 32.15 on Wednesday. FirstEnergy Corp. has a 1-year low of $31.29 and a 1-year high of $46.77. The stock has a 50-day moving average of $32.19 and a 200-day moving average of $35.99. The company has a market cap of $13.446 billion and a P/E ratio of 131.76.
FirstEnergy Corp. (NYSE:FE) last posted its quarterly earnings results on Tuesday, November 5th. The company reported $0.94 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.92 by $0.02. During the same quarter last year, the company posted $1.11 earnings per share. Analysts expect that FirstEnergy Corp. will post $2.97 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Saturday, March 1st. Stockholders of record on Friday, February 7th will be paid a dividend of 0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 4.48%.
FirstEnergy Corp. (NYSE:FE) is engaged in the holding, directly or indirectly, of its subsidiaries: Ohio Edison Company (OE), The Cleveland Electric Illuminating Company (CEI), The Toledo Edison Company (TE), Pennsylvania Power Company (Penn) (a wholly owned subsidiary of OE), American Transmission Systems, Incorporated (ATSI), Jersey Central Power & Light Company (JCP&L), Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec).
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