We have maintained our Neutral recommendation on
). The company currently has a Zacks Rank #3 (Hold).
Why the Reiteration?
The reiteration is primarily based on the company's highly
regulated operations, pending rate cases and commodity price
risks. However, we consider Exelon's strong financial position,
solid utility operations, and initiatives taken to increase
production through renewable sources to be the catalysts for
In first-quarter 2013, Exelon's earnings per share and revenues
surpassed the Zacks Consensus Estimates due to positive impacts
from the merger with Constellation Energy, strong performances
from PECO Energy and Baltimore Gas and Electric segments, and
favorable weather conditions.
As of Mar 31, 2013, Exelon's cash and cash equivalents were $0.7
billion and cash provided by operating activities during first
three months of 2013 was $0.9 billion. Stable financial position
enables the company to upgrade existing set ups and add new
assets through organic as well as inorganic route.
The completion of the merger with Constellation has already
benefited Exelon's results. We believe this merger will
subsequently boost the company's position in terms of load and
customer base. Exelon expects to garner $550 million from
merger-related operations and maintenance synergies in 2015.
Recently, Exelon completed a number of organic ventures like a
69-megawatt of solar installation under its Antelope Valley Solar
Ranch project, and four wind construction projects including
Harvest II, Beebe, Whitetail and High Mesa. We believe these
projects will allow the company to diversify and expand its
Other Stocks to Consider
Other stocks from the industry that are presently performing
Companhia Paranaense de Energia
CPFL Energia S.A.
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).
ALLETE INC (ALE): Free Stock Analysis Report
CPFL ENERGI-ADR (CPL): Get Free Report
COPEL-ADR PR B (ELP): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
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