Exelon price target lowered to $37 from $39 at KeyBanc

KeyBanc lowered the firm’s price target on Exelon (EXC) to $37 from $39 and keeps an Underweight rating on the shares. The firm believes Exelon benefited from its “wires-only” characteristics and lower risk profile while the power demand thesis was being shaken earlier this year. Even though Exelon is currently trading at a discount to peers, KeyBanc thinks that the “ultra defensive” trade is overdone and expects this trade to reverse as investors’ risk appetite returns, resulting in further margin compression to shares.