Morgan Stanley Keeps an Overweight Rating on FirstEnergy Corp. (FE)

Core Viewpoint - FirstEnergy Corp. is recognized as one of the best electric utility stocks to invest in, with a positive outlook supported by recent financial performance and strategic capital expenditures [1][2]. Financial Performance - FirstEnergy reported a 4.3% increase in full-year earnings, attributed to rising energy rates and new Pennsylvania rates, which helped offset higher operating costs [3]. - The company achieved a profit of $1.02 billion, or $1.77 per share, in 2025, an increase from $978 million, or $1.70 per share, the previous year [3]. - Core earnings from the distribution division grew by $0.23 per share year on year [3]. - The company reiterated its 2026 EPS projection of $2.62 to $2.82 [3]. Capital Expenditure Plans - FirstEnergy disclosed a $36 billion capital expenditure plan for 2026-2030, with over $19 billion allocated for transmission [3]. - The company announced $6 billion in investments for 2026 [3]. Analyst Ratings - Morgan Stanley raised FirstEnergy's price target to $53 from $50 while maintaining an Overweight rating, indicating confidence in the company's future performance [2][6]. - The firm noted that utilities had underperformed compared to the S&P in January, suggesting a potential for recovery [2].