On Monday analyst at Deutsche Bank upgraded Exelon Corporation (
) to a "Buy" rating.
The analysts upgraded EXC from "Hold" to "Buy" with a price
target of $34, up from $33. The new target is a +19% increase from
Friday's closing price of $28.57.
Deutsche Bank commented, "We have been in the negative or
cautious camp on EXC all year, most notably given our EPS outlook
after the June Analyst Day and views on valuation. With the stock
down 34% YTD and 20% this month after CEO Crane cast doubts on
dividend sustainability, however, we now see an opportunity for the
value investor. EXC has lagged utilities by 11% and the S&P by
20% in November, yet the outlook has actually improved slightly as
gas/power prices have strengthened. While our call may be early
given dividend tax hike fears and EXC's own unresolved dividend
overhang, we now see more risk in being too late."
Exelon shares were up 40 cents, or +1.40%, in premarket trading
The Bottom Line
Shares of Exelon Corporation (
) have a 7.35% dividend yield, based on Friday's closing stock
price of $28.57. the stock has technical support in the $23-$24
price area. If the shares can firm up, we see overhead resistance
around the $32 price level.
Exelon Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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