Analyst recommendations and price targets
According to analyst consensus, hybrid utility FirstEnergy (FE) has a price target of $33.72 against its current market price of $30.45. This target implies an estimated upside of 11%, one of the highest currently among the stocks in the S&P 500 Utilities Index (XLU).
The chart below shows how analysts’ views on FirstEnergy have changed since the beginning of 2017.
Peer Exelon (EXC) has a price target of $39.26 against its current market price of $37.39, which indicates a potential gain of 5%.
Entergy (ETR) has an estimated gain of nearly 4% against its current market price of $75.90. It has a price target of $78.88.
Though FirstEnergy stock currently looks to be trading at a discount, its earnings volatility might make it less attractive for utility investors. Its strategy of becoming a pure-play regulated utility might bode well for it and its investors in the long term.
You can learn about top utilities in the sector in Market Realist’s series The Best Utility Stock out There: NEE, DUK, or SO?