UPDATE: JP Morgan Upgrades Exelon to Neutral on Natural Gas Exposure

JP Morgan resumed its coverage on Ecelon

with a raised rating, from Underweight to Neutral, and a price target increased from $37 to $40 a share. JP Morgan noted, "The company offers exposure to rebounding natural gas prices and potential constructive resolution of several rate cases and will benefit in the long-term from continued emission regulations, potentially including CSAPR. Additionally it offers what we believe is a secure 5.5% dividend, the highest in the utility industry. However volume and margin growth at the retail business is uncertain and earnings over the next several years are dependent on successful execution of large merger synergies. We believe the current share price accurately reflects the wholesale, regulatory and execution risks and are therefore remaining on the sidelines." Exelon closed at $38.06 on Monday.