Exelon on the Street: Analysts’ Recommendations and Targets
Exelon (EXC) is facing multiple challenges right now. Its uneconomical nuclear generation could become lucrative with state aid, but the weakened power demand growth and the falling wholesale power prices could keep obstructing Exelon’s growth.
Exelon’s focus on higher contributions from regulated operations is likely to bode well for its earnings growth in the long term, but its large exposure to competitive operations makes it a relatively risky bet compared to other large-cap peers.
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At the same time, Exelon’s less stable earnings make its dividends and stock movements volatile, which could drive investors to turn away from the largest competitive utility in the US.
Analysts still seem to be bullish on Exelon stock. According to the Wall Street analyst consensus, Exelon stock has an upside potential of 11% going forward, with a mean price target of $41.19, compared with its current market price of $37.28.
Notably, none of the 20 analysts tracking Exelon stock has rated the stock as a “sell” as of September 21, 2017, while six analysts have recommended EXC stock as a “strong buy,” and nine have recommended it as a “buy.” Five analysts rate it as a “hold.”
By comparison, FirstEnergy (FE) has an attractive upside potential. Analysts have given FE a mean price target of $34.47, compared with its current market price of $31.19, which implies an estimated upside potential of 10.5%. Public Service Enterprise Group (PEG) has a mean target of $48.35, compared with its current market price of $45.23, which indicates a possible gain of 7% going forward.
To learn about the price targets of top utility stocks, check out Market Realist’s series SO, NEE, and DUK: Looking at Top Utilities’ Price Targets. For a comprehensive analysis of the ten top-yielding utility stocks (XLU), check out Market Realist’s series Sector Scan: The 10 Top-Yielding SPX Utility Stocks.