Jefferies has increased its 12-month price target on FirstEnergy Corp. (NYSE: FE) to $49.00, up from $48.00, while retaining a Hold rating on the utility's shares. The stock was trading at $46.56, close to its 52-week high of $48.20, and the company carries a market capitalization of $26.9 billion.
The brokerage firm pointed to FirstEnergy's scheduled fourth-quarter 2025 earnings call as a likely near-term catalyst that could give investors firmer line-of-sight on the company's growth path. The call, slated for February 17 - about 22 days away - is expected to provide detail on capital expenditures spanning 2026-2030 as well as clarity on rate base trajectory.
Jefferies said it will be watching how management frames a previously disclosed 30% transmission step-up - whether that figure should be treated as a ceiling or merely a base level before potential additional wins from PJM Open Window projects are incorporated. The outcome could have implications for the company's regulated transmission growth prospects.
The research note reiterated FirstEnergy's 2026 Core EPS guidance range of $2.60 to $2.82 and flagged the company's plan to invest roughly $6 billion in capital expenditures during 2026. Analysts will be monitoring how those incremental projects will be funded and whether additional equity will be required to support them.
Credit metrics are another focus for Jefferies. The firm noted FirstEnergy's funds-from-operations-to-debt ratio of about 14% and expressed interest in whether that metric will hold up amid ongoing policy pressures in Ohio and New Jersey. Maintaining resilient credit metrics is central to the company's financial profile and affects financing flexibility for planned investments.
Jefferies projects a 9% total shareholder return for FirstEnergy over the next 12 months. That projection factors in the company's 3.82% dividend yield and a 29-year history of consecutive dividend payments. The stock is trading at a PEG ratio of 0.41, which Jefferies interprets as a low price-to-earnings multiple relative to near-term growth expectations.
Recent corporate actions and regulatory developments
FirstEnergy has been active on several fronts as it seeks to address regulatory and legacy issues while preparing for future growth. The company extended the deadline for an exchange offer covering up to $450 million of outstanding 4.750% Senior Notes due 2033; company disclosures indicate that nearly all of those notes have already been tendered.
On credit ratings, S&P Global Ratings upgraded FirstEnergy to 'BBB+', citing improvements in governance and risk management following events tied to H.B. 6. Separately, FirstEnergy reached a settlement to provide $275 million to Ohio customers, a resolution intended to address a range of regulatory matters before the Public Utilities Commission of Ohio.
FirstEnergy's board also declared a quarterly dividend of $0.445 per share, payable on March 1, 2026, to shareholders of record as of February 6, 2026.
In related coverage, Mizuho affirmed a Neutral rating on FirstEnergy with a $50 price target after meetings with the company's CFO to discuss future plans and regulatory strategy.
Investors and analysts will be parsing the upcoming earnings call for specifics on the company's capital plan execution, rate base trajectory, funding approach for incremental projects and how regulatory developments in key states could influence credit and growth metrics. Those disclosures are likely to shape near-term market reactions and inform analyst outlooks.