Deutsche Bank Upgrades Exelon (EXC) to Buy

Deutsche Bank upgraded Exelon (NYSE: EXC) from Hold to Buy with a price target of $39.00 (from $36.00). Analyst Jonathan Arnold called the stock a "cheap play on regulated assets with catalysts."

"In merchant generation we have removed our PJM discount from valuations given normalization seen in regional spark spreads as gas prices have rallied off lows. We highlighted this in our June Power Q note but kept the discount pending marking our commodity numbers. Combined with a higher regulated multiple this move bolsters valuations on PJM integrated heavyweights EXC and PEG, with both having lagged top-performing regulateds and IPPs. Of the two we see a better near-term catalyst set with EXC and an entry point for a cheaper way to own regulated assets with attractive growth," said the analyst.

For an analyst ratings summary and ratings history on Exelon click here. For more ratings news on Exelon click here.

Shares of Exelon closed at $36.46 yesterday.

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