TD Cowen Upgrades FirstEnergy to Buy, Sets $53 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: seekingalpha
- Rating Upgrade: TD Cowen upgraded FirstEnergy's stock rating from Hold to Buy with a price target of $53, despite a 1.4% decline in share price during Friday's trading session.
- Investment Opportunities: Analyst Shelby Tucker highlighted robust transmission investment opportunities for FirstEnergy, particularly with likely generation needs in West Virginia, showcasing its unique advantage in data center-driven load growth.
- Regional Advantage: FirstEnergy's service territories connect the supply-abundant western PJM with increasingly constrained eastern load centers, positioning the company to benefit from the incremental transmission investments required to move power effectively.
- Improving Regulatory Relationships: Following the SEC settlement, FirstEnergy's regulatory relationships are improving, with upcoming West Virginia and Maryland rate cases serving as near-term proof points, although structural regulatory risks in PJM remain a concern.
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Analyst Views on FE
Wall Street analysts forecast FE stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 46.190
Low
46.00
Averages
49.25
High
54.00
Current: 46.190
Low
46.00
Averages
49.25
High
54.00
About FE
FirstEnergy Corp. and its subsidiaries are involved in the transmission, distribution, and generation of electricity through its segments: Distribution, Integrated and Stand-Alone Transmission. The Distribution Segment, which consists of the Ohio Companies and FirstEnergy Pennsylvania Electric Company (FE PA), distributes electricity in Ohio and Pennsylvania. The Integrated segment includes the distribution and transmission operations under Jersey Central Power & Light Company (JCP&L), Monongahela Power Company (MP) and The Potomac Edison Company (PE), as well as MP's regulated generation operations. The segment distributes electricity in New Jersey, West Virginia and Maryland, provides transmission infrastructure, and operates over 3,610 megawatts of regulated generation capacity. The Stand-Alone Transmission segment consists of its ownership in FET and KATCo, which includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Vegetation Management: The plan allocates $83 million annually for tree trimming and vegetation management, addressing one of Ohio's leading causes of outages, ensuring stability and safety in power supply.
- Customer Bill Assistance: The TYRP focuses on extending existing bill assistance programs and adding new initiatives to support customers struggling to pay their electric bills, ensuring necessary support and services amid economic pressures.
- Gradual Bill Changes: By spreading investments over three years, the TYRP helps maintain gradual bill changes, making it easier for customers to manage costs, with expected monthly bill changes remaining within manageable limits to alleviate financial burdens on families and businesses.
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- Investment Opportunities: Analyst Shelby Tucker highlighted robust transmission investment opportunities for FirstEnergy, particularly with likely generation needs in West Virginia, showcasing its unique advantage in data center-driven load growth.
- Regional Advantage: FirstEnergy's service territories connect the supply-abundant western PJM with increasingly constrained eastern load centers, positioning the company to benefit from the incremental transmission investments required to move power effectively.
- Improving Regulatory Relationships: Following the SEC settlement, FirstEnergy's regulatory relationships are improving, with upcoming West Virginia and Maryland rate cases serving as near-term proof points, although structural regulatory risks in PJM remain a concern.
See More
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- Investment Overview: FirstEnergy's Three-Year Rate Plan (TYRP) outlines an average annual investment of $800 million in infrastructure upgrades, including neighborhood poles, wires, and grid technology, aimed at reducing outages and speeding up power restoration, thereby enhancing the reliability of the electric system.
- Vegetation Management: The plan allocates $83 million annually for tree trimming and vegetation management, addressing one of Ohio's leading causes of outages, ensuring stability and safety in power supply.
- Customer Bill Assistance: The TYRP focuses on extending existing bill assistance programs and adding new initiatives to support customers struggling to pay their electric bills, ensuring necessary support and services amid economic pressures.
- Gradual Bill Changes: By spreading investments over three years, the TYRP helps maintain gradual bill changes, making it easier for customers to manage costs, with expected monthly bill changes remaining within manageable limits to alleviate financial burdens on families and businesses.
See More
FirstEnergy Files Three-Year Rate Plan for Infrastructure Upgrades
- Infrastructure Investment: FirstEnergy's proposed three-year plan allocates approximately $800 million annually for electric infrastructure upgrades, aimed at reducing outages and speeding restoration times, thereby enhancing customer satisfaction and the company's reputation.
- Customer Bill Adjustments: Under the proposal, residential customers using about 1,000 kWh per month are expected to see annual bill increases of 2.2%-2.8%, translating to an additional $4.26 to $5.30 per month, ensuring customers can gradually adapt to the changes in costs.
- Vegetation Management Plan: The plan also includes $83 million per year for tree trimming and vegetation management to address one of Ohio's leading causes of outages, further improving grid reliability and safety.
- Customer Support Initiatives: FirstEnergy will create a new $4 million energy assistance fund through the consolidation of existing programs, aiming to provide more support for economically challenged customers and enhance the company's sense of responsibility and image within the community.
See More
CDL's Distribution Structure Solid Amid Rising Yield Competition
- Solid Distribution Structure: CDL's distribution relies entirely on dividends collected from large U.S. companies, with a payout of $2.29 per share in 2025 against a current share price of approximately $76, ensuring stable cash flow and reliable monthly distributions.
- Increased Yield Competition: The 10-year Treasury yield has reached 4.61%, surpassing CDL's 3.6% yield, which pressures share price upside but does not threaten CDL's monthly dividend stream.
- Portfolio Concentration: CDL's income is primarily derived from regulated utility companies like WEC Energy and Duke Energy, which possess stable cash flows and long-term dividend records that support future dividend growth.
- Strong Long-Term Returns: Despite the pressure from rising yields, CDL has increased by 18% over the past year, 54% over five years, and 190% over ten years, demonstrating that it provides stable dividends without sacrificing capital.
See More
FirstEnergy Seeks Electric Rate Adjustment for Investments
- Rate Adjustment Proposal: Mon Power and Potomac Edison have filed with the West Virginia Public Service Commission for an electric rate adjustment aimed at supporting investments in the power system through gradual, smaller increases, ensuring reliable power supply during severe weather.
- Inflation and Investment Adjustment: The proposed adjustment includes $76 million in investments, expected to result in an average residential customer's monthly bill increasing by approximately 3% and 2.9% in 2026 and 2027 respectively, thereby providing customers with predictability in pricing.
- Base Rate Adjustment: As an alternative, the traditional rate adjustment proposal amounts to $188 million, focusing on replacing outdated equipment and introducing new technology, which is projected to reduce outage times for rural customers by an average of four hours per year, achieving a 53% reduction.
- Commitment to Customer Service: Mon Power and Potomac Edison are committed to responsible cost management, with all rate changes requiring approval from the Public Service Commission to ensure customer interests are protected while continuing to enhance power infrastructure for improved service quality.
See More
FirstEnergy Seeks Rate Adjustment to Enhance Service Reliability
- Rate Adjustment Proposal: Mon Power and Potomac Edison have filed for a rate adjustment with the West Virginia Public Service Commission, proposing an inflation and investment adjustment of $76 million, which would lead to an approximate 3% increase in the average residential customer's monthly bill.
- Infrastructure Investment: Under the traditional approach, a proposed adjustment of $188 million aims to replace outdated equipment and introduce new technology to reduce outage frequency and duration, with expectations of cutting outage time for rural customers by an average of four hours annually, thereby enhancing service reliability.
- Customer Impact Assessment: Both proposals ensure that residential customers will continue to pay the lowest rates among West Virginia's regulated utilities, balancing the need for a resilient electric system with customer cost concerns, reflecting the company's commitment to customer interests.
- Regulatory Review Commitment: All rate changes must be reviewed and approved by the Public Service Commission, ensuring that the proposal's rationale and its impact on customers are thoroughly evaluated, which further enhances the company's trustworthiness among its customer base.
See More
TD Cowen Upgrades FirstEnergy to Buy, Sets $53 Target
- Rating Upgrade: TD Cowen upgraded FirstEnergy's stock rating from Hold to Buy with a price target of $53, despite a 1.4% decline in share price during Friday's trading session.
- Investment Opportunities: Analyst Shelby Tucker highlighted robust transmission investment opportunities for FirstEnergy, particularly with likely generation needs in West Virginia, showcasing its unique advantage in data center-driven load growth.
- Regional Advantage: FirstEnergy's service territories connect the supply-abundant western PJM with increasingly constrained eastern load centers, positioning the company to benefit from the incremental transmission investments required to move power effectively.
- Improving Regulatory Relationships: Following the SEC settlement, FirstEnergy's regulatory relationships are improving, with upcoming West Virginia and Maryland rate cases serving as near-term proof points, although structural regulatory risks in PJM remain a concern.
See More
