UPDATE: UBS Starts Constellation Energy (CEG) at Neutral

UBS analyst Ross Fowler initiates coverage on Constellation Energy (NASDAQ: CEG) with a Neutral rating and a price target of $50.00.

The analyst comments "We are initiating coverage of CEG at Neutral on valuation post its spin out from Exelon. We would become more positive on the shares if: (1) there were further energy price inflation to widened quark spreads in 2024 and beyond; (2) deployment of significant free cash flow to growth than the share buybacks our model assumes; (3) a nuclear production tax credit passed in federal legislation. We would become more negative if: (1) there were incremental nuclear operational risk; (2) cash flow was deployed at inadequate realized returns; (3) investor sponsorship for power infrastructure at or above mid-cycle multiples fails to materialize. Our adj EBITDA forecast is $2,638/$2,838/$3,075mln for '22/23/24."

For an analyst ratings summary and ratings history on Constellation Energy click here. For more ratings news on Constellation Energy click here.

Shares of Constellation Energy closed at $45.29 yesterday.

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