"We find FE shares to be attractive, trading at a P/E discount to our utility group average multiple," Jefferies said.
The firm also increased its 2015 EPS estimate by 10 cents to $2.85 to reflect assumed rate relief in Pennsylvania.
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Notably, FirstEnergy reached a partial stipulation with certain parties in its Ohio Electric Security Plan filing, in hopes of attracting key players into a broad based coalition, but the sticking point is the proposed 15-year power purchase agreement with several of its non-regulated power plants, analysts said.
Shares of FirstEnergy closed up 2.09% at $39.01 yesterday.
Separately, TheStreet Ratings team rates FIRSTENERGY CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIRSTENERGY CORP (FE) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."