Exelon downgraded at Guggenheim after ‘highly disappointing’ Illinois order

Guggenheim analyst Shahriar Pourreza downgraded Exelon (EXC) to Neutral from Buy with a price target of $40, down from $44, after the Illinois Commerce Commission, or ICC, “delivered a highly disappointing final order” and rejected Ameren (AEE) and Exelon’s grid plans, or MYIGP. While noting that some investors have asked if yesterday’s reaction in both names was “overdone,” the firm says it sees “little reason to remain positive” with 27% of the rate base exposed to the uncertainty of having to re-file the grid plan as well as “a hostile commission.” The firm adds “this is not an AEE or EXC issue, this is an IL issue.”