In a report released on February 22, Anthony Crowdell from Mizuho Securities maintained a Buy rating on Exelon (EXC – Research Report), with a price target of $39.00.
Anthony Crowdell has given his Buy rating due to a combination of factors, including Exelon’s robust fourth-quarter earnings and a revised but realistic EPS compound annual growth rate (CAGR). Despite a cut in the CAGR to 5-7% from the previously projected 6-8%, Exelon’s management showed adaptability by raising their capital plan to $34.5 billion and planning an equity introduction of $1.3 billion to fund this increase and bolster the balance sheet. Crowdell believes that this financial strategy, along with the company’s consistent earnings growth, positions Exelon to close the valuation gap and potentially receive a premium P/E valuation from investors.
In addition to the financial adjustments, Crowdell’s confidence in the Buy rating is strengthened by Exelon’s proactive approach to regulatory hurdles, particularly in Illinois. Following an unfavorable regulatory decision, Exelon’s management is actively engaging stakeholders and revising its grid plan to align with new expectations, a move that is already accounted for in the updated EPS growth rate. The firm’s revised estimates for the years 2024-26 reflect the increased capital expenditure forecast and management’s equity issuance plan. This comprehensive approach to tackling regulatory challenges and maintaining financial health underpins Crowdell’s optimistic outlook on Exelon’s stock performance.
According to TipRanks, Crowdell is a 4-star analyst with an average return of 2.8% and a 57.44% success rate. Crowdell covers the Utilities sector, focusing on stocks such as Eversource Energy, Pinnacle West Capital, and American Electric Power.
In another report released on February 22, Wolfe Research also maintained a Buy rating on the stock with a $39.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Exelon (EXC) Company Description:
Illinois-based Exelon Corp. is a utility company, which is engaged in power generation, competitive energy sales, transmission and delivery in the United States and Canada. The company operates through five business units including, ComEd, PECO, BGE, PHI, and Generation.
Read More on EXC:
- Ex-Dividend Date Nearing for These 10 Stocks – Week of February 26, 2024
- Exelon price target lowered to $39 from $41 at Wells Fargo
- Early notable gainers among liquid option names on February 21st
- Exelon Announces Q4 Results and Future Strategies
- Exelon raises quarterly dividend to 38c from 36c per share
