Ross Fowler, an analyst from Bank of America Securities, maintained the Hold rating on Exelon (EXC – Research Report). The associated price target is $41.00.
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Ross Fowler’s rating is based on a combination of factors that reflect Exelon’s performance and outlook. The company’s Q4 and full-year 2024 earnings exceeded consensus expectations and reached the top end of their guidance range, with operating earnings of $0.64 and $2.50 per share, respectively. Exelon has also updated its capital expenditure plan to $38 billion through 2028 and reaffirmed its 5-7% earnings and rate base growth guidance, which are positive indicators of its future growth potential.
Despite these positive developments, the decision to maintain a Hold rating is influenced by certain challenges. Exelon’s consolidated return on equity for 2024 was 9.1%, at the lower end of their target range and slightly below the previous year’s level. Additionally, while earnings improved at the BGE and PHI subsidiaries, there were declines at ComEd and PECO, driven by various factors such as regulatory outcomes and increased costs. These mixed results, along with Exelon’s current stock price being slightly above the price objective, justify the Hold rating.
Fowler covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, Edison International, and NextEra Energy. According to TipRanks, Fowler has an average return of 3.5% and a 57.46% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $46.00 price target.