Boston, MA 03/24/2014 (wallstreetpr) – Exelon Corporation (NYSE:EXC) is a provider of energy and holding company for several businesses. The company closed last week on all positive fronts and this week will be closely watched. Exelon had its rating and price target adjusted positively last week; it was also a week that the stock was largely on the gaining zone after it announced agreement to acquire another energy property that will boost its natural gas energy business.
The stock was upgraded by analysts at Credit Suisse from neutral to outperform. The analysts also upped their price target on the stock to $35 from $23. Share jumped significantly on the new. The Friday session saw share of the company changing hands at $32.55, up 3.76 percent by closing bell. The previous session saw more than twice the daily average shares volume changing hands and the shares trading between $31.93 low and $32.87 high. Looking at the Friday closing of the shares, the price target by Credit Suisse suggests potential upside of about 11 percent.
Analysts dispel turnaround concern
With share of Exelon Corporation (NYSE:EXC) having witnessed impressive gains in the past, investors have increasingly become concerned over the potential of the stock to continue going up. But Dan Eggers, analyst with Credit Suisse, commented that a significant amount of the stock’s turnaround potential is not yet factored into the valuation. This is to say that while the stock has been seen rising, there was still a lot of room for the stock to rise again.
Acquisition and its impact
Exelon Corporation (NYSE:EXC) announced last week that it reached a deal to purchase a natural gas energy subsidiary of ETC Marketing Limited – ETC ProLiance Energy. The energy business is involved in the supply of natural gas to mainly industrial and commercial customers. The business also owns power generators as well as utilities.
According to Exelon management, acquisition of ProLiance will boost its position in Midwest gas business as well as customer service reputation, given that ProLiance already commands solid reputation as a supplier of natural gas and utility. The deal is expected to be sealed in the second quarter of the current fiscal year.