What Do Brokers Think About Exelon after Its 1Q16 Earnings?
Exelon Reports 1Q16 Earnings: Will Nuclear Plant Closures Help?
The road ahead for Exelon investors
Exelon’s (EXC) increasing inclination for regulated operations may bode well for its stable growth in the future. Management forecasts its earnings to increase 7%–9% in the next couple of years. Pepco Holdings’ contribution may boost this and can bring more earnings stability. Exelon’s expected 2.5% dividend growth rate is well below its utility peers (XLU). It could thus become an unattractive option for income-seeking investors, considering its total return potential. The fate of Exelon Generation may be uncertain until the legislators’ verdict for the Illinois Energy Bill is certain.
Let’s look now at various brokers’ price targets for Exelon.
Price targets
According to Wall Street analysts, Exelon has a price target of $36.50 against its market price of $35.70. This implies an estimated upside of 2.4% in one year.
Of the 24 analysts tracking Exelon, 12 recommend a “hold,” while 11 recommend a “buy.” One analyst recommends a “sell” as of May 9, 2016.
As for its peers, FirstEnergy (FE) has a price target of $37.70 against its current market price of $34.40. This reflects a possible rise of 9%. Public Service Enterprise (PEG) has a price target of $46.40 against its current market price of $45.20. This reflects a possible rise of 3%.
Entergy (ETR) implies an estimated rise of 4% based on its price target of $77.40. It’s currently trading at $74.30 as of May 9, 2016.
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