In a report released yesterday, James Thalacker from BMO Capital maintained a Buy rating on Exelon, with a price target of $48.00.
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James Thalacker has given his Buy rating due to a combination of factors that highlight Exelon’s strong growth potential and strategic positioning. The company is expected to achieve a 5-7% long-term EPS CAGR, supported by a low-risk and diversified capital program that increasingly focuses on transmission projects, particularly those servicing large loads and data centers. Additionally, Exelon has opportunities for regulated generation growth in its service territories of Maryland, New Jersey, and Pennsylvania.
Exelon’s management has reiterated a robust capital plan amounting to $38 billion, with a potential upside of $10-15 billion in transmission. Despite not having the high-growth profile currently favored by investors, Exelon’s 12% relative discount and its solid growth drivers present an attractive risk-return profile. The company’s regulatory clarity in Maryland and Illinois, along with its support for state initiatives to maintain resource adequacy and affordable power rates, further strengthen its strategic outlook, making it a compelling investment choice.
According to TipRanks, Thalacker is a 5-star analyst with an average return of 14.1% and a 68.31% success rate. Thalacker covers the Utilities sector, focusing on stocks such as Sempra Energy, PPL, and PG&E.