Exelon downgraded to Neutral from Buy at UBS

UBS downgraded Exelon to Neutral from Buy with a price target of $37, down from $47. The firm cites lower expected earnings power for 2024-2027 for the downgrade, and tells investors in a research note that the actions taken by the Illinois Commerce Commission signal a material degradation of the regulatory environment. The timeline for the grid re-filing will likely take all of 2024 before there is a clear sense of the amount of CapEx and growth trajectory of ComEd’s earnings through 2027, which presents a material overhang on valuation, UBS says.