FirstEnergy Corp (FE) – Price Target Raised to $54

FirstEnergy Corp. (NYSE:FE) is included among the 15 Utility Stocks with Highest Dividends.

FirstEnergy Corp (FE) - Price Target Raised to $54

FirstEnergy Corp. (NYSE:FE)’s electric distribution companies form one of America’s largest investor-owned electric systems, serving more than 6 million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.

On March 23, Morgan Stanley analyst David Arcaro slightly increased the firm’s price target on FirstEnergy Corp. (NYSE:FE) from $53 to $54, while maintaining an ‘Overweight’ rating on the shares. The updated target indicates an upside of almost 6% from the current levels.

The move comes as Morgan Stanley revised its estimates in the North American Regulated & Diversified Utilities / IPPs under its coverage. The analyst outlined the overall utility sector’s strong performance in February, when it posted gains of almost 22%. This compares to a surge of just under 14% delivered by the overall market.

The analyst firm outlined the constructive recent discussions in the industry, with companies expressing optimism regarding growth opportunities and load growth. A number of utilities have also recently signed multi-year deals with data centers, further adding to their growth outlook.

To keep up with the expanding demand, FirstEnergy Corp. (NYSE:FE) highlighted a 5-year capital investment program of $36 billion in February, targeting a consolidated ROE of 9.5% to 10% through the planning period.

While we acknowledge the risk and potential of FE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best S&P 500 Stocks to Buy Right Now and 15 Large-Cap Stocks with Highest Dividends

Disclosure: None. Follow Insider Monkey on Google News.