Exelon (EXC) has received a new Buy rating, initiated by Evercore ISI analyst, Nicholas Amicucci.
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Nicholas Amicucci has given his Buy rating due to a combination of factors including Exelon’s favorable regulatory environment and strong growth prospects. The company benefits from supportive rate mechanisms that allow for approximately 92% of its rate-base expansion to be recoverable, significantly reducing risk. Exelon’s capital plan of around $38 billion through 2028 and an expected EPS compound annual growth rate of 5-7% contribute to a stable and predictable earnings growth profile.
Additionally, Exelon’s robust load pipeline, which stands at 17GW with an additional 16GW expected by year-end, showcases its ability to secure and execute projects effectively. This capability, coupled with a positive regulatory outlook, supports the company’s financial benefits realization. The valuation approach used by Amicucci involves a relative multiple applied to an implied XLU reference multiple, resulting in a target price of $57, representing a potential upside of approximately 25% from current levels, justifying the Outperform rating.
In another report released on October 1, BMO Capital also maintained a Buy rating on the stock with a $48.00 price target.