UBS Maintains a 'Buy' on Exelon (EXC); Regulatory Improvement on Horizon

UBS maintains a 'Buy' on Exelon (NYSE: EXC) price target lowered $1 to $49.

UBS analyst says, "We are upwardly revising our FY11 EPS to $4.25, at the top end of EXC’s EPS guidance range of $4.05-4.25, to reflect the quarterly results. We believe mgmt’s current guidance range is abundantly conservative and bias our 4Q estimate to the upside; mgmt alluded on the call it would achieve at least the top end of the range."

"Improving construct in IL as House and Senate pass amended ComEd bill: SB Amendment #1, the “trailer bill” to ComEd’s SB1652 bill, vetoed earlier this year, has been passed in both the IL House and Senate. ComEd is committed to pursuing the tracker given the reduction in regulatory lag and provision for formulaic rate treatment, which should more than offset the lower ROE (3.14% + 5.8% adder = 8.94% authorized ROE) and potential for performance penalties; should the bill be passed in the near term, new rates could be effective ~June ‘12. While reducing regulatory risk, the bill will hurt its relationship with the new ICC."

For more ratings news on Exelon click here and for the rating history of Exelon click here.

Shares of Exelon closed at $42.71 yesterday.

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