Exelon downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Exelon (EXC) to Equal Weight from Overweight with a price target of $38, down from $45, following the “surprisingly negative outcomes” last week in Ameren (AEE) and Exelon’s rate cases in Illinois. The decisions result in lower EPS, slower rate base growth and a further regulatory overhang in 2024, as well as a lower multiple on Illinois earnings due to challenging regulatory treatment, the analyst tells investors.