Jefferies upgraded FirstEnergy Corp. (NYSE: FE) from Hold to Buy with a price target of $37.00 (from $31.00).

Analyst Paul B. Fremont comments, "FirstEnergy regulated earnings less holding company expenses are trading at a discount to our regulated utility average P/E multiple. Beginning in 2017, merchant free cash flow is expected to be positive while providing only a nominal contribution to EBITDA and earnings. We would view FirstEnergy as a regulated utility with a free option on recovery of power prices."

The firm lowered FY 2014 EPS from $2.55 to $2.40 and raised FY 2015 EPS from $2.75 to $2.85.

For an analyst ratings summary and ratings history on FirstEnergy Corp. click here. For more ratings news on FirstEnergy Corp. click here.

Shares of FirstEnergy Corp. closed at $32.65 yesterday.