Analyst Ryan Levine from Citi maintained a Hold rating on Constellation Energy Corporation (CEG – Research Report) and keeping the price target at $318.00.
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Ryan Levine’s rating is based on the recent developments in power deals involving Constellation Energy Corporation, particularly in the context of its nuclear assets. The news of Amazon’s power deal and the associated pricing trends suggest that the market is stabilizing around $80/MWh for front-of-the-meter power agreements, with inflation escalators potentially driving prices higher over time. This pricing consistency aligns with the recent deals that CEG has been involved in, such as the Clinton deal, indicating a stable revenue outlook for the company.
Given these developments, Levine believes that while there is potential for CEG to secure more contracts, the likelihood of these deals significantly exceeding or falling below the current pricing range is reduced. This stability in pricing and contract structure supports a Hold rating, as it suggests a balanced risk-reward scenario for investors. Additionally, the expected share price return of 8.8% reflects a neutral stance, acknowledging both the opportunities and risks associated with CEG’s future deal execution in the evolving energy market.
Levine covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, Evergy, and American Electric Power. According to TipRanks, Levine has an average return of 6.3% and a 59.09% success rate on recommended stocks.