UBS Remains Sidelined on Exelon Corp. (EXC) Despite Positive Investor Sentiment

UBS maintained a Neutral rating on Exelon (NYSE: EXC), and cut the price target to $30.00 (from $33.00), despite bullish sentiment from investors. UBS sees the close of the POM deal as critical to sentiment. Should it close, UBS sees a clear upside to valuation from simple accretion, as well as ROE upside should management prove capable in turning around operations.

Analyst Julien Smith commented, "Despite continued bullish sentiment from investors to the contrary, we remain on the sidelines despite the ~16% underperformance vs. the XLU in 2015. While admittedly the IPP sector valuations are at decade lows, we see arguments around ‘Utility + Parent’ ignoring the fact that ExGen is not necessarily cheap compared with IPP comps."

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 $27.94 yesterday.

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