UPDATE: Morgan Stanley Initiates Equal-Weight, $40 PT on Exelon Corporation

Morgan Stanley initiated its coverage on Exelon Corporation

with an Equal-weight rating and a price target of $40 a share. Analysts believe that, while dividends limit downside on shares, gas limits upside. Morgan Stanley commented, "EXC shares look fairly valued and have limited catalysts over the short to medium term, in our view. While we think Exelon's attractive dividend yield of 5.4% is sustainable, we also believe the stock is effectively reflecting a $4.50/mmBtu long-run natural gas price, consistent with peers." Exelon Corporation closed at $39.49 on Monday.