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FE: Core Earnings Outlook Will Strengthen as Reliability Projects Move Forward

Update shared on 06 Nov 2025

Fair value Increased 3.19%
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AnalystConsensusTarget's Fair Value
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1Y
10.6%
7D
0.2%

Analysts have raised their price target for FirstEnergy from $48.45 to $50.00, citing improved profit margin expectations as well as slight adjustments to revenue growth and future earnings multiples.

What's in the News

  • FirstEnergy has revised its 2025 Core Earnings guidance upward to $2.50 to $2.56 per share, narrowing its original range and reflecting a strong financial outlook. (Corporate Guidance)
  • A new substation in Morgan County, West Virginia, is now operational. This project enhances power reliability for nearly 2,000 Potomac Edison customers and leverages smart grid technology to reduce outages. (Client Announcements)
  • Construction is underway on a major reliability project in Adams County, Pennsylvania. The project is expected to benefit nearly 2,300 customers and critical facilities such as hospitals through a new substation and high-voltage transmission line. (Business Expansions)
  • Modernization of the electric system in northern Monmouth County, New Jersey, is starting. Jersey Central Power & Light is investing $1.6 million to reduce the frequency and duration of power outages for thousands of residents. (Business Expansions)

Valuation Changes

  • Consensus Analyst Price Target has risen from $48.45 to $50.00, reflecting a modest increase in projected valuation.
  • Discount Rate remains unchanged at 6.78%, indicating consistent evaluation of risk over time.
  • Revenue Growth forecast has declined from 4.25% to 3.71%, reflecting slightly reduced expectations for top-line expansion.
  • Net Profit Margin has improved from 10.95% to 11.83%, signaling stronger expected profitability.
  • Future P/E has decreased from 19.88x to 18.77x, marking a moderate reduction in forward earnings multiples.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.