UPDATE: ISI Group Drops PT to $40 on Exelon Corporation On Less Robust Power Outlook

ISI Group reiterates its Hold rating on Exelon Corporation

but cuts its price target from $46 to $40. ISI Group notes, "Our 12-month target price is now $40 down from $46, mainly reflecting a less robust outlook for power and capacity prices. We have lowered our EPS forecast but nonetheless think the company's earnings, cash flow and balance sheet profile support credit metrics that look investment grade without equity needs through 2014 at current forward pricing for power and capacity, supporting a utility group high 5.7% dividend yield. If EXC is successful in corroborating our view at their 6/7/12 analyst day, we believe the shares could drift back towards $40/share, 7% upside presuming investors are willing to see through current gas and power market weakness and discount an eventual recovery in pricing." EXC closed at $36.70 on Monday.