Deutsche Bank Has Hold On Exelon

Deutsche Bank has a Hold rating and a $42 price target on Exelon Corporation EXC. In a note sent to investors, Deutsche Bank writes, "Last night Exelon announced that it would close Oyster Creek, a 625 MW nuclear plant, in 2019, a decade before its operating license expires. EXC cited low power prices and demand, and the need for significant capital investment as rationale for their decision. Closing the plant in 2019 will allow them to avoid installing cooling towers at a cost of $700-$800M. Shutdown decision not all that surprising Earlier this year, the New Jersey Department of Environmental Protection issued a draft permit that would require the installation of cooling towers by 2019. EXC was still waiting for final clarity from the NJ DEP, but had clearly indicated that they would close the plant if forced to install cooling towers. With the permit issue unresolved, timing of EXC's announcement is intriguing and possibly a final play to push for a more favorable ruling." Shares of EXC gained 15 cents yesterday to close at $39.61.