FirstEnergy price target raised to $48 from $47 at KeyBanc

KeyBanc raised the firm’s price target on FirstEnergy (FE) to $48 from $47 and keeps an Overweight rating on the shares. The firm says FirstEnergy remains one of the few “value” names it prefers as KeyBanc believes the company trades at an unwarranted discount to its peers. Given the overall diminishing of OH in the rate base, the firm continues to view the overhang as overblown. Therefore, it thinks investors will turn the focus to management’s ability to execute on its plan, and the company’s $26B five-year capital plan supporting a 9% RB CAGR and translates into a 6%-8% EPS growth rate.