Exelon raised to Buy at Mizuho on valuation, strong EPS growth rate
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Exelon (EXC
+0.5%) edges higher at Mizuho upgrades shares to Buy from Neutral with a $46 price target, raised from $43, based on valuation, saying the utility trading at a 4.5% P/E discount is "an attractive investment opportunity."
Mizuho analyst Paul Fremont forecasts Exelon's EPS growth rate at a well above average 7.3% with a balance sheet in line with peers including projected 2024 FFO/debt ratio of 13.6%.
Exelon has a light regulatory calendar this year with a major general rate case filing expected next year for its Commonwealth Edison subsidiary, Fremont says.
Also, Exelon COO Calvin Butler said utilities will need to work closely with states when federal funding becomes available for building a national U.S. highway network of electric vehicle charging stations, referring to the $1T infrastructure bill approved by Congress last year that included ~$5B for high-use corridors that connect the entire U.S. 
If utilities do not "lean in" to the process, "the buildout may not be as quick and therefore not as efficient," Butler told the CERAWeek by S&P Global energy conference.
Exelon recently was downgraded by RBC because the company was "not as much fun" without Constellation Energy, and by Wells Fargo because the utility's jurisdictions are average to below average from a regulatory standpoint.