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On Monday, BMO Capital Markets raised the price target for Exelon Corporation (NASDAQ:EXC) shares to $50.00, up from the previous $46.00, while maintaining an Outperform rating on the stock. The adjustment comes ahead of the company’s first-quarter earnings report for 2025, which is scheduled for release on May 1st. According to InvestingPro data, analyst targets for the stock range from $41 to $52, with the company currently trading near Fair Value levels. The stock has shown impressive momentum, delivering a 23.94% return year-to-date.
Analysts at BMO Capital expect Exelon to post earnings per share (EPS) of $0.87 for the first quarter of 2025. This figure represents an approximate 28% increase year over year and aligns closely with the FactSet/Bloomberg median EPS estimate of $0.88. InvestingPro data reveals that 8 analysts have recently revised their earnings estimates upward, with the company maintaining profitability over the last twelve months with a P/E ratio of 18.87x. Despite anticipation for the earnings release, significant fundamental updates are not expected, given the company’s comprehensive capital plan refresh in the fourth quarter of 2024.
Investors are anticipated to focus on Exelon’s perspective regarding the impact of recent Maryland legislation, which codifies Multi-Year Rate Plans (MYRPs) but omits reconciliations. Additional attention will likely be directed towards other macroeconomic factors, including tariffs, sales impacts, and potential opportunities related to data center activity and transmission.
The majority of Exelon’s revenues are insulated from sales fluctuations, with approximately 80% being decoupled. This financial structure could potentially shield the company from some of the broader market challenges.
BMO Capital’s revised price target of $50 is based on a mark-to-market (MTM) and sum-of-the-parts (SOTP) valuation approach. The firm remains confident in Exelon’s performance, reiterating their Outperform rating as the company approaches its first-quarter earnings announcement.
In other recent news, Exelon Corporation has made significant financial and leadership moves. The company issued $1 billion in new debt notes, with the proceeds intended for repaying commercial paper borrowings and general corporate purposes. Additionally, Exelon successfully closed a public offering of junior subordinated notes, raising $1 billion at a 6.500% interest rate, indicating a strategic approach to managing its capital structure. In leadership changes, Carim Khouzami and Tamla Olivier have been appointed to key executive roles, with Khouzami as Executive Vice President of Transmission and Development and Olivier as President and CEO of Baltimore Gas and Electric. Furthermore, Exelon has welcomed cybersecurity expert David DeWalt to its Board of Directors, aiming to strengthen its focus on technology and security. On the analyst front, Evercore ISI downgraded Exelon’s stock rating from Outperform to In Line while raising the price target to $48, reflecting a recalibration of expectations based on the company’s market position. These developments highlight Exelon’s ongoing efforts to adapt to the evolving energy landscape and maintain its competitive edge.
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