Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Exelon Corporation (NYSE:EXC) is the largest electric holding company in the U.S., with around 10 million customers. A better valuation model, potential upside to consensus estimates and few headwinds led Goldman Sachs to upgrade the equity the energy stock this week.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Goldman Sachs' Michael Lapides upgraded Exelon from Sell to Neutral with a price target lifted from $40 to $43.
The Thesis
The bearish case for Exelon's stock no longer applies for three reasons, Lapides said in the upgrade note. (See the analyst's track record here.)
They are:
- An improved sum-of-the-parts valuation model.
- Potential upside versus consensus estimates.
- Minimal negative catalysts in the near term.
Goldman's sum-of-the-part valuation model derives a total value per share of $43 versus a prior $40, Lapides said. The difference comes from a more attractive valuation as earnings from the company's ExGen business increase, while net debt decreases along with a lower holding company drag.
Upside to Exelon's earnings 2019 and beyond could come from the following factors, the analyst said:
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
- Updated hedging.
- Improved O&M cost management at ExGen.
- Updated rate increases at the company's regulated utilities.
- Lower debt financing needs.
This year's PJM capacity auction represents a modest headwind, as the market appears to be oversupplied, Lapides said.
Litigation around Exelon's nuclear subsidies remains a risk over the longer-term and could be worth 25 cents per share in EPS through 2020, according to Goldman Sachs.
Nevertheless, there are few negative catalysts in the near-term, Lapides said.
Price Action
Shares of Exelon were trading higher by 1.2 percent Thursday morning.
Benzinga's Top Upgrades, Downgrades For March 29, 2018
The Market In 5 Minutes: Jobless Claims Fall, Tech Stocks, Harley Upgrade And More
Exelon's Mystic Station power plant in Everett, Massachusetts. Photo by Fletcher6/Wikimedia.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.