Mizuho downgrades Exelon on llinois regulatory concerns

Mizuho downgraded Exelon to Neutral from Buy with a price target of $40, down from $45. The analyst cites concerns over the Illinois regulatory environment for the downgrade. The recent decision for Illinois gas utilities and the subsequent below-average return on equities has the firm lowering its view of Exelon to a group average price-to-earnings multiple. Although Illinois is only 30% of Exelon, it is the company’s largest jurisdiction and a premium valuation will now be a challenge, the analyst tells investors in a research note.