Firstenergy Price Target Lowered to $44 at Scotiabank
Scotiabank lowered its price target on FirstEnergy (FE) to $44 from $50, maintaining an Outperform rating on the shares. While the firm appreciates the reset of expectations, it also understands that FirstEnergy's cash flow and dividend yield have become less attractive in recent months. The lower price target reflects a decrease in the firm's valuation multiples due to industry-wide headwinds.
- This downward revision highlights the growing concern among analysts about the impact of coal-based power generation on FirstEnergy's business model, underscoring the need for the company to diversify its revenue streams.
- Will FirstEnergy be able to execute on its strategy to increase renewable energy production and reduce its dependence on coal, or will this transition further erode investor confidence?