Utility services provider Exelon Corporation ( EXC
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com