Morgan Stanley analyst David Arcaro raised the firm’s price target on FirstEnergy (FE) to $50 from $49 and keeps an Overweight rating on the shares as the firm re-forecasted its model with Q3 results. The strong 6%-8% earnings growth would warrant a 10% premium, but Morgan Stanley is waiting for track record in execution including resolution of the Ohio rate case, the firm told investors in a research note. Morgan Stanley added that at FirstEnergy’s current valuation, it sees “significant” upside.
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Read More on FE:
- The Week That Was, The Week Ahead: Macro and Markets, Feb. 1
- FirstEnergy: Strengthening Regulated Growth Profile and Reduced Regulatory Overhang Support Buy Rating and $50 Target
- FirstEnergy upgraded to Outperform from Peer Perform at Wolfe Research
- FirstEnergy price target lowered to $50 from $51 at Barclays
- FirstEnergy price target raised to $49 from $47 at Morgan Stanley