Market Overview

UPDATE: ISI Group Upgrades Exelon to Buy on Valuation Post Sell-Off

Related EXC
Mid-Day Market Update: Crude Oil Slides Over 1%; American Apparel Shares Jump
Top 4 Stocks In The Diversified Utilities Industry With The Highest Revenue
Mid-Market Report: M&A in Payment Systems and Utilities (Fox Business)

ISI Group raised its rating on Exelon (NYSE: EXC) from Neutral to Buy while reiterating its previous $35 price target.

ISI Group noted, " EXC shares have traded off 13% since 11/1, when the company announced that it might cut the dividend if power market conditions did not show improvement over the subsequent six months. Interestingly, the stock is now down 20% since the natural gas and power prices bottomed on 8/29/12 (gas and power prices are both up ~12% since then). While we think that a substantial dividend cut is likely required to maintain EXC's investment grade rating, our valuation model is dividend agnostic; - at current forward curves, and assuming EXC fails to fully achieve its gross margin targets in its competitive retail and wholesale power business, we still derive a 12 month target price of $35 /sh, 19% upside to the current price (14.3x 2014 EPS and an 3.1% pro-forma dividend yield)."

Exelon closed at $29.32 on Monday.

Latest Ratings for EXC

DateFirmActionFromTo
Dec 2014Deutsche BankMaintainsBuy
Oct 2014JefferiesMaintainsBuy
Oct 2014Deutsche BankMaintainsBuy

View More Analyst Ratings for EXC
View the Latest Analyst Ratings

Posted-In: ISI GroupAnalyst Color Upgrades Intraday Update Analyst Ratings

 

Related Articles (EXC)

Around the Web, We're Loving...

Get Benzinga's Newsletters