UPDATE: Jefferies Downgrades Exelon Corporation on Valuation
In a report published Wednesday, Jefferies analyst Paul B. Fremont downgraded the rating on Exelon Corporation (NYSE: EXC) from Hold to Underperform, and lowered the price target from $29.00 to $24.50.
In the report, Jefferies noted, “We are downgrading Exelon to Underperform from Hold based on valuation. The company currently trades at a group average P/E but, in our view, should trade at a discount based on the significant contribution of supply and other low multiple businesses to Exelon Generation results. Additionally, the high cash spending of Exelon on nuclear fuel and maintenance results in very little free cash flow generated by the company.”
Exelon Corporation closed on Tuesday at $28.69.
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