AnalystConsensusTarget updated the narrative for EXC

Exelon's analyst price target has risen from $47.93 to $49.33, reflecting analysts' growing confidence in the company's regulatory stability and earnings outlook, even though projected growth rates have been slightly reduced.

Analyst Commentary

Recent research coverage of Exelon has focused on both the company's solid regulatory positioning and changing expectations for growth and valuation. Analysts continue to assess how Exelon's execution and market dynamics may influence its share price and long-term outlook.

• Several bullish analysts have raised their price targets, citing Exelon's strong regulatory jurisdictions and the stability of its earnings growth profile as drivers of valuation premium versus peers.
• The company's significant rate-base expansion, much of which is recoverable through forward-looking mechanisms, offers visible, predictable earnings growth and relative insulation from market volatility.
• Some research points to Exelon trading at a notable discount to intrinsic value, describing it as one of the best value opportunities among regulated utilities, particularly as other regions (such as Pennsylvania) are expected to contribute more meaningfully to growth in coming years.
• Continued upward adjustments to quarterly earnings projections and reaffirmation of long-term guidance support confidence in management's ability to deliver on operational targets.

• Bearish analysts are cautious about ongoing challenges in markets like Illinois and Maryland, where regulatory headwinds could limit upside to performance and valuation relative to more constructive jurisdictions.
• There is skepticism that the recent "ultra-defensive" trade, the move toward low-risk utilities like Exelon, may be losing momentum as risk appetite returns to the broader market, potentially resulting in margin compression and underperformance.
• A number of research notes maintain neutral or hold stances, reflecting views that while Exelon has key strengths, its growth rate projections are moderating and its current discount to peers could persist if investor sentiment does not shift.
• Some adjustments have involved modest reductions in price targets due to industry-wide updates, signaling that analysts see limited immediate catalysts for significant outperformance over regulated utility sector averages.

What's in the News

• ComEd, an Exelon subsidiary, opened the new application period for the Low-Income Home Energy Assistance Program (LIHEAP), expanding income eligibility and offering additional support for households struggling with energy costs. (Key Developments)
• All LIHEAP-approved ComEd customers through December 31 will automatically enroll in the 2025 Low-Income Discount (LID) program, which provides a flat monthly discount on energy bills to those most in need. (Key Developments)
• Exelon reaffirmed its earnings guidance for 2024 to 2028 and maintains a projected 5% to 7% compounded annual growth in operating earnings per share as part of its long-term financial outlook. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $47.93 to $49.33, signaling incremental optimism in the share valuation outlook.
• Discount Rate remains unchanged at 6.78%, indicating steady long-term risk assumptions by analysts.
• Revenue Growth projections have fallen moderately from 3.32% to 3.20%, reflecting tempered expectations for near-term expansion.
• Net Profit Margin is largely stable, edging down fractionally from 12.41% to 12.40%.
• Future P/E ratio has increased from 18.39x to 19.00x, which suggests higher anticipated earnings multiples applied to Exelon’s forecasted performance.