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Brokerages still not positive on First Energy

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First Energy’s coverage on Wall Street

First Energy Corporatiion (FE) is covered by 22 major analysts on Wall Street. Tracking key developments of First Energy and the power industry, these analysts recommend investors to buy, sell, or hold a security based on their research.

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What do the brokers say?

Brokerage firms do not seem to be positive on First Energy. Only three firms state a buy recommendation, while four brokerage firms are bearish on First Energy and hold a sell recommendation for the stock.

Fifteen other analysts see a limited downside in First Energy and rate it as hold. Depressed stock price and earnings stability could be the rationale for these brokerages. First Energy’s shares have declined by nearly 30% in the last five years, and the repositioning of its business toward more fee-based revenue ensures more stability in its earnings.

Consensus analysts’ views serve as a key sentiment indicator for a security in the market.

What targets are brokerages giving to First Energy’s stock?

First Energy has been downgraded by two major investment banks this year. UBS (OUBS) and Citigroup (C)  have downgraded First Energy to sell and cut its target price. In July, UBS cut its price target for First Energy from $31 to $26.

Among brokerages that are bullish on First Energy, Jefferies Group (JEF) maintains a price target for the stock of $45. Also, Macquarie Group (MQG) has a buy call on First Energy and stated a price target for the stock of $39. First Energy currently trades at $37.54.

Investors can invest in the Standard & Poors depositary receipt (or SPDR) Utilities Select Sector (XLU) for a diversified exposure in power utilities.

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