In a report released yesterday, James Thalacker from BMO Capital maintained a Buy rating on Constellation Energy Corporation (CEG – Research Report), with a price target of $350.00.
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James Thalacker has given his Buy rating due to a combination of factors that highlight Constellation Energy Corporation’s strategic positioning and financial prospects. The company has secured a significant 20-year virtual power purchase agreement with Meta Platforms, which is expected to enhance its earnings per share, EBITDA, and adjusted free cash flow by approximately 5% on an annualized basis. This agreement underscores Constellation’s role as a leader in carbon-free energy production, which is increasingly attractive to investors seeking decarbonization opportunities.
Additionally, the anticipated financial benefits from the agreement, including a projected share price increase to $350, are supported by Constellation’s low leverage and innovative clean energy strategies. These factors, combined with the company’s ability to return a substantial portion of its after-tax gross margin to shareholders, position it favorably within the independent power sector. As a result, Thalacker views Constellation Energy as a compelling investment opportunity, particularly for those interested in sustainable energy solutions.
In another report released yesterday, Wolfe Research also maintained a Buy rating on the stock with a $350.00 price target.
CEG’s price has also changed moderately for the past six months – from $254.200 to $299.540, which is a 17.84% increase.
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