Update shared on 10 Dec 2025
Fair value Increased 0.17%Analysts have modestly raised their price target on FirstEnergy to approximately $50.00. This reflects slightly stronger projected revenue growth that more than offsets a marginally lower profit margin outlook and a small uptick in the assumed future valuation multiple.
What's in the News
- FirstEnergy is proposing a 1,200 megawatt combined cycle natural gas plant in West Virginia alongside 70 megawatts of utility scale solar. The package is expected to create more than 3,260 construction jobs and generate about $68 million in state and local tax revenue during the buildout phase, with significant long term employment and tax benefits once operational (Key Developments).
- Subsidiaries Mon Power and Potomac Edison plan to file proposals with the West Virginia Public Service Commission in early 2026 to either partner on or independently develop the new gas plant, which is still in the site selection phase. The companies are positioning the project as a future growth catalyst for the region (Key Developments).
- FirstEnergy has narrowed and effectively raised its 2025 core earnings guidance to a range of $2.50 to $2.56 per share, now targeting the upper half of its original $2.40 to $2.60 per share range. The company cited stronger year to date performance and an improved outlook (Key Developments).
- A new Potomac Edison substation in Morgan County, West Virginia, is enhancing power reliability for nearly 2,000 customers by replacing an older facility and a long, hard to reach power line with a more accessible configuration. The new substation is equipped with smart grid technology that can automatically detect, isolate and help restore outages remotely (Key Developments).
- The Morgan County substation upgrade is part of Energize365, FirstEnergy's planned $28 billion grid modernization program across its five state footprint from 2025 to 2029. The initiative is aimed at building a smarter, more resilient electric grid to support current demand and future growth (Key Developments).
Valuation Changes
- Fair Value Estimate edged up slightly from about $49.92 to $50.00 per share, reflecting a modestly higher intrinsic value assessment.
- Discount Rate was essentially unchanged, ticking down marginally from about 6.96 percent to 6.96 percent, indicating a stable risk and return profile.
- Revenue Growth increased slightly from roughly 3.71 percent to 3.77 percent, signaling a modestly stronger top line outlook.
- Net Profit Margin slipped slightly from about 11.83 percent to 11.80 percent, indicating a small downward adjustment to profitability expectations.
- Future P/E rose slightly from roughly 18.80 times to 18.83 times, suggesting a marginally higher assumed valuation multiple on forward earnings.
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