NEW YORK (AP) — Exelon Corp. appears to be headed for higher-than-expected earnings as it closes its $7.9 billion acquisition of Constellation Energy Group, a Citi analyst said Tuesday.
Analyst Brian Chin boosted profit estimates for the Chicago-based energy company to $4.19 per share in 2011, $3.08 per share in 2012, and $3.14 per share in 2013 . That's up from previous estimates of $3.82, $2.80 and $2.73 per share, respectively. Chin also upgraded Exelon to "Buy" from "Hold" and lifted its target price by $7 to $48 per share.
Chin said Exelon's buyout offer for Baltimore-based Constellation Energy Group Inc. will likely close despite opposition from consumer groups and state officials in Maryland. Maryland officials have said they're concerned about the Exelon's reliance on nuclear power and questioned its commitment to renewable energy.
Despite opposition, "the merger is still on track," Chin said.
Chin also noted that Exelon's nuclear power plants will give it an advantage over other utilities as new federal regulations clamp down on greenhouse gas emissions. Emissions from nuclear generators are far lower than natural gas or coal-fired generators.
Exelon shares fell 42 cents, or 1 percent, to $40.78 in premarket trading.
0 comments:
Post a Comment