Mizuho Securities analyst Anthony Crowdell has maintained their neutral stance on FE stock, giving a Hold rating on February 28.
Anthony Crowdell has given his Hold rating due to a combination of factors impacting FirstEnergy’s financial outlook. The company’s recent reduction in earnings estimates, driven by the removal of non-utility earnings and a decrease in utility contributions, has led to a cautious stance. Despite management’s optimism about achieving the higher end of their EPS growth target by 2025, uncertainties surrounding the Ohio rate case and potential legislative changes pose significant challenges.
Additionally, the stock’s recent 10% decline, attributed to these uncertainties and the timing of the earnings rebase, underscores investor concerns. While there might be a short-term recovery in share prices, a substantial rerating would require favorable outcomes in regulatory proceedings and clarity on the company’s strategy in a potentially altered regulatory environment. Consequently, the Hold rating reflects the need for FirstEnergy to effectively address these issues to unlock shareholder value.
In another report released on February 28, Wells Fargo also maintained a Hold rating on the stock with a $41.00 price target.