Markets

Exelon Downgraded to “Neutral” at UBS (EXC)

Utility services provider Exelon Corporation ( EXC

) saw its rating cut on Monday by analysts at UBS.

The firm downgraded EXC from "Buy" to "Neutral" with a $40 price target. That target represents a potential 4% downside to the company's Friday closing price of $41.83.

UBS noted that the company faces a difficult rate case in Illinois, and that it has exposure to falling commodity prices, hence the downgrade.

Exelon shares rose 17 cents, or +0.4%, in premarket trading Monday.

The Bottom Line

We removed shares of EXC back on Aug.1, 2008, when the stock was trading at $78.62. The company has a 5.02% dividend yield, based on Friday's closing stock price of $41.83. The stock has technical support in the $37-$38 price area. If the shares can firm up, we see overhead resistance around the $45 price level. We would remain on the sidelines for now.

Exelon Corporation ( EXC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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