Boston, MA 10/21/2013 (wallstreetpr) – Pennsylvania incorporated Exelon Corporation (NYSE:EXC) seems to have hit a wrong chord with analyst community. Company is scheduled to declare its third quarter numbers on 30th October 2013 and quite a few analyst groups have started reducing their price targets for the company which is engaged in business of energy generation and delivery.
Trading precariously close to its 52 week low, this $25 Billion company has seen some negative sentiments building up for quite some time. After hitting a high of $37.8 in April this year, share prices have been continuously grinded lower and lower and are currently at $28.75. Deutsche bank has decided to reduce its price target by $2 and have now come up with a Hold rating with new target price of $30. BMO Capital has also chosen to cut their target prices from a high of $36 to $32. Analysts at Wunderlich and RBC Capital have also downgraded the stock and have given new price targets as $33 each.
And important point to note here is that stock price has been going downhill with increasing volumes. This shows that in addition to analysts, the investors and traders are also having trouble buying into Exelon’s story. In last quarterly results, company had almost made achieved the consensus earning target of 54 cents per share. The market expectation from the stock on a full year basis is to earn $2.46 per year. But with energy prices not in favor of generation and distribution entities like Exelon, it seems that there is more pain in store for the stock in near to mid term. But for long term investors of the company, which is also America’s largest nuclear power generator, all does not seem to be lost. Company offers a decent dividend income and is available at quite low prices. For anyone looking to invest for next 18 to 24 months, this might be a good stock to park the funds.
