Deutsche Bank Downgrades Exelon (EXC) to Hold

May 28, 2013 6:49 AM EDT
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Price: $35.44 --0%

Rating Summary:
    14 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank downgraded Exelon (NYSE: EXC) from Buy to Hold with a price target of $34.00 (from $38.00), saying RPM results have negative implications for financial outlook, upside thesis.

Analyst Jonathan Arnold comments, "We upgraded EXC to Buy in late November as we saw an eventual dividend cut as both priced in and value-accretive, and viewed EXC's optionality to a power market recovery as undervalued. While we still view the simplicity of EXC's power story and commodity leverage as appealing, we are stepping to the sidelines as we cannot ignore the thesis-altering implications of Friday's PJM capacity auction results. EXC now faces headwinds in 2016-17 from a material step down in RPM revenues. More importantly, another surge of new committed gas plants and imports in 2016 is a big risk that may offset energy price upside expected from coal plant retirements."

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 $34.65 yesterday.

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