Exelon (EXC) has received a new Buy rating, initiated by BMO Capital analyst, James Thalacker.
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James Thalacker has given his Buy rating due to a combination of factors including Exelon’s strategic capital plan and its potential for robust earnings growth. The company is expected to extend its 5-7% EPS growth guidance through 2028, which aligns with its history of strong performance and provides a favorable outlook for future earnings. The anticipated update of Exelon’s capital plan involves significant investments in transmission projects that are likely to drive a 7.5% growth in the rate base, further enhancing the company’s financial strength.
Additionally, Exelon’s shares have shown favorable performance, yet they still trade at a discount compared to 2027 EPS estimates. This discount presents an attractive opportunity for investors, especially given the quiet regulatory calendar expected in 2025, which may contribute to multiple expansion. The combination of Exelon’s low-risk business model in transmission and distribution, along with its clear growth prospects and supportive regulatory context, supports the Buy rating issued by James Thalacker.
In another report released on January 28, Jefferies also maintained a Buy rating on the stock with a $47.00 price target.