UBS Maintains a 'Neutral' on Exelon (EXC); Merger S4 Yields EPS Surprises
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Price: $45.57 -0.63%
Rating Summary:
8 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 3 | New: 5
Rating Summary:
8 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 1 | Down: 3 | New: 5
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UBS maintains a 'Neutral' on Exelon (NYSE: EXC), raises PT from $44 to $45.
UBS analyst says, "EXC-CEG S4 filing suggests EPS upside, albeit high energy assumptions - The S4’s projected EBITDA and EPS generally exceed our estimates for both EXC and Constellation Energy (NYSE: CEG) beginning in ’12 and beyond (under both co’s assumptions). Both EXC and CEG opted to use out of market commodity assumptions, with EXC growing energy prices at 5-10% (vs. ~7-9% contango suggested in PJM West and NI Hub market forwards, respectively). Both CEG and EXC projections are as of late January, 2011. Market forwards are up at PJM West and flat at NI Hub since."
"We are however maintaining our Neutral rating, which incorporates only mgmt’s latest cost synergy projections and no revenue synergies. While shares are likely to trade flat in the near term given the regulatory overhang of MD PSC and FERC approval, we see upside to earnings pending final synergy benefits (we ascribe no revenue benefits) and expect relative outperformance in 2012."
For more ratings news on Exelon click here and for the rating history of Exelon click here.
Shares of Exelon closed at $42.75 yesterday.
UBS analyst says, "EXC-CEG S4 filing suggests EPS upside, albeit high energy assumptions - The S4’s projected EBITDA and EPS generally exceed our estimates for both EXC and Constellation Energy (NYSE: CEG) beginning in ’12 and beyond (under both co’s assumptions). Both EXC and CEG opted to use out of market commodity assumptions, with EXC growing energy prices at 5-10% (vs. ~7-9% contango suggested in PJM West and NI Hub market forwards, respectively). Both CEG and EXC projections are as of late January, 2011. Market forwards are up at PJM West and flat at NI Hub since."
"We are however maintaining our Neutral rating, which incorporates only mgmt’s latest cost synergy projections and no revenue synergies. While shares are likely to trade flat in the near term given the regulatory overhang of MD PSC and FERC approval, we see upside to earnings pending final synergy benefits (we ascribe no revenue benefits) and expect relative outperformance in 2012."
For more ratings news on Exelon click here and for the rating history of Exelon click here.
Shares of Exelon closed at $42.75 yesterday.
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