Citi Reiterates Neutral Rating on Constellation Energy (CEG)
Citi analyst Ryan Levine reiterated a Neutral rating and $284.00 price target on Constellation Energy (NASDAQ: CEG).
The analyst comments "Although FERC remains interested in supporting datacenter development, we think the FERC workshop (takeaways) and its rejection of the Talen deal makes it harder for CEG’s existing nuclear fleet to execute future co-located deals. We estimate that today’s stock selloff implies that the market reduced expectation from ~7.7GW to ~4.7GW co-location deals. From here, FERC, ISOs, and Constellation are likely to work on potential solutions to improve the viability of datacenters moving quickly while preserving reliability for the public. In the meanwhile, the stock selloff increases the attractiveness of potential $1.8B+ share buybacks and CEG benefits from strong operating performance which drove upward revision of the midpoint of 2024 guidance."
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Shares of Constellation Energy closed at $258.10 yesterday.