Exelon price target lowered to $39 from $42 at KeyBanc

KeyBanc lowered the firm’s price target on Exelon (EXC) to $39 from $42 and keeps an Underweight rating on the shares. The firm says its rating reflects its broader industry thesis which favors IPPs and vertically integrated utilities over wires-only names such as Exelon. Even though the stock is trading at a considerable discount to peers, KeyBanc believes that political pressures and multiple gubernatorial elections in its footprint will cap the potential for multiple expansion in the near-term. At the same time, a growth rate revision is also not likely in the near-term, in the firm’s view, given the nature of the wires-only business and lack of near-term clarity on whether Exelon would be able to participate in state-level solicitations.