UPDATE: Deutsche Bank Upgrades Exelon to Buy; Value Opportunity on Dividend Cut Fears

Deutsche Bank raised its rating on Exelon

from Hold to Buy while lowering its price target from $35 to $34. Deutsche Bank noted, "We have been in the negative or cautious camp on EXC all year, most notably given our EPS outlook after the June Analyst Day and views on valuation. With the stock down 34% YTD and 20% this month after CEO Crane cast doubts on dividend sustainability, however, we now see an opportunity for the value investor. EXC has lagged utilities by 11% and the S&P by 20% in November, yet the outlook has actually improved slightly as gas/power prices have strengthened. While our call may be early given dividend tax hike fears and EXC's own unresolved dividend overhang, we now see more risk in being too late. Risks are weak power prices and increased retail competition." Exelon closed at $28.57 on Friday.