Mizuho Securities analyst Anthony Crowdell has maintained their neutral stance on FE stock, giving a Hold rating yesterday.
Anthony Crowdell has given his Hold rating due to a combination of factors influencing FirstEnergy’s current financial and operational outlook. The company is navigating regulatory challenges in Ohio, with hearings scheduled and no settlement expected in the rate case, which could impact its financial stability. Additionally, FirstEnergy’s capital expenditure plan was reduced to maintain healthy credit metrics, reflecting a cautious approach to financial management.
Furthermore, the company’s valuation is currently at a discount, limiting potential benefits from equity financing. The timing of the financial reset was not ideal, influenced by changes in management and external financial pressures. Lastly, legislative changes in Ohio could affect future revenue streams, adding another layer of uncertainty to the company’s financial projections.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $43.00 price target.