-- Exelon (EXC) will eventually be able to offset the negative impact on revenue of the withdrawal of rate cases by its Pennsylvania-based energy utility subsidiary PECO, RBC Capital Markets said.
The subsidiary withdrew its electric and gas rate cases with the Pennsylvania Public Utility Commission, which were requests for a $429 million electric revenue increase and an $81 million gas increase, the brokerage said in a Friday note.
They estimate that PECO will miss about $130 million to $200 million in incremental revenue, translating to a negative impact of about $0.09 to $0.14 on earnings per share in 2027.
Exelon will be able to mitigate the drag through new rate hike requests, managing operations and maintenance costs, and an accelerated capital plan company-wide.
The investment firm noted that Exelon maintained its 2026 adjusted EPS guidance of $2.81 to $2.91 and expressed confidence in its ability to achieve the high end of its annual EPS growth target of 5% to 7% through 2029.
BC maintained its sector-perform rating on the stock and lowered its price target to $48 from $51.
Price: $47.18, Change: $+0.15, Percent Change: +0.33%