Constellation Energy (CEG) PT Raised to $255 at Mizuho
Mizuho analyst Paul Fremont raised the price target on Constellation Energy (NASDAQ: CEG) to $255.00 (from $189.00) while maintaining a Neutral rating.
The analyst commented: "Last Friday, CEG announced a plan to restart Unit 1 of the TMI nuclear plant along with signing a 20-year, fixed-price VPPA with MSFT. CEG is expected to have the unit online by 2028 and the restart is expected to increase CEG's base EPS growth rate from at least 10% to at least 13% annually in the 2024 to 2030 time period. We estimate the company is receiving ‾$104/MWh physical PPA price (see math within), coming in substantially higher than peer IPPs. Additionally, we believe the process to restart Crane has a manageable risk profile as CEG is very familiar with the plant, having operated it for many years and due diligenced the plant extensively. We remain Neutral-rated on shares of CEG as we believe the benefit of higher pricing as reflected in shares and see balanced risk-reward. PT to $255 on higher multiples and the PV of Crane."