According to Wall Street analysts’ consensus, FirstEnergy (FE) stock has a mean price target of $36.2, which indicates an implied gain of 19% over the next 12 months. It’s currently trading at $30.4.
Among the 16 analysts covering FirstEnergy on January 8, 2018, ten recommended “holds” on the stock, while five recommended “buys.” One analyst recommended a “strong buy” on the stock.
FirstEnergy stock continues to trade at a large discount compared to its historical average as well as to the industry average. It’s currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 8.2x compared to its five-year average valuation multiple of just below 10x. The industry average valuation is ~11x.
You can analyze the largest utility stocks by market cap in Market Realist’s An Investor’s Guide: A Look at the 10 Largest S&P 500 Utilities.