UPDATE: ISI Group Reiterates Buy Rating, Lowers PT on Exelon Corporation

In a report published Friday, ISI Group reiterated its Buy rating on Exelon Corporation

, but lowered its price target from $39.00 to $35.00. ISI Group noted, “EXC shares declined 6% yesterday after EXC stated on its Q3 earnings call that if power market conditions don't improve in the next six months, they may consider a change to their dividend policy in order to maintain investment grade credit ratings. We think the stock is getting close to a level where, even if the dividend is cut, the stock is cheap enough to own. Our 12 month target price is now $35 a share (down from $39) and we would be buyers of EXC at $32 where, even assuming a dividend cut in mid-'13, the total return prospects are +/-15% at current forward curves. If power markets improve, we see upside to $40/share, the dividend is probably safe, and total return prospects from $32/share are >30%.” Exelon Corporation closed on Thursday at $33.58.