J.P. Morgan analyst Jeremy Tonet has maintained their neutral stance on EXC stock, giving a Hold rating on June 18.
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Jeremy Tonet has given his Hold rating due to a combination of factors influencing Exelon’s current and future potential. The company’s significant opportunities in transmission and distribution (T&D) capital expenditures are promising, with expectations for substantial investments related to new business and PJM work. However, there are uncertainties surrounding the regulatory environment, particularly with the Illinois Commerce Commission (ICC) and its impact on authorized returns, which tempers enthusiasm.
Moreover, while Exelon is positioned to benefit from a large pipeline of load applications, especially in data centers, the progress is contingent on several external factors, including regulatory approvals and market conditions. The company’s strategic initiatives in energy security and resource adequacy are aligned with broader industry trends, but the ongoing debates about transmission and distribution investments and their returns add a layer of complexity. These mixed signals contribute to the Hold rating, as the potential upside is balanced by the challenges and uncertainties in the regulatory and operational landscape.
In another report released on June 18, Morgan Stanley also maintained a Hold rating on the stock with a $48.00 price target.