UPDATE: Citigroup Downgrades Exelon to Sell on Valuation

Citigroup reduced its rating on Exelon (NYSE: EXC) from Neutral to Sell and lowered its price target from $39 to $31. Citigroup noted, "Our downgrade and target price reduction is driven by our Street-low forecasted EPS outlook of $2.25 in 2014. This is primarily driven by our inclusion of the pro rata share of CENG O&M costs which were previously not incorporated in our ExGen model and marking our model to market with the 8/29/12 commodity deck. We believe CENG O&M costs are not fully reflected in Street estimates, which could partially explain our below consensus forward estimates. Our downgrade is valuation driven; we have not changed our fundamental view of the Company." Exelon closed at $36.15 on Friday.