Argus maintains Buy rating and $45 stock target on Exelon shares By Investing.com


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On Wednesday, Argus sustained its positive stance on Exelon Corporation (NYSE:NASDAQ:), a company serving approximately 10 million customers with electricity and across several U.S. states. The firm reiterated its Buy rating and a stock price target of $45.00, reflecting confidence in the company’s strategic shift towards becoming a pure-play transmission utility following the spinoff of its competitive energy business.

The transformation is seen as a move that will enable Exelon to better manage costs and potentially benefit from the anticipated moderate wholesale energy prices in 2024. The company’s management has forecasted a long-term earnings growth rate of 6%-8% for its utilities, a target that Argus believes is well within reach.

The analyst firm also highlighted Exelon’s recent favorable rate case decisions as a contributing factor to its optimistic outlook. These decisions are expected to support the company’s financial performance moving forward. Moreover, Exelon’s commitment to a cleaner transmission mix, with a particular focus on hydropower, was noted as a positive aspect of its operations.

Exelon’s customer base spans across Illinois, Maryland, Pennsylvania, New Jersey, Delaware, and the District of Columbia. The company’s pivot away from generating operations to focus on transmission is seen as a strategic move that could lead to more predictable and stable financial outcomes.

The reaffirmed Buy rating and stock price target by Argus indicate a continued endorsement of Exelon’s business strategy and growth potential in the utility sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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