Constellation Energy price target lowered to $311 from $358 at JPMorgan

JPMorgan lowered the firm’s price target on Constellation Energy (CEG) to $311 from $358 and keeps an Overweight rating on the shares. The firm says that with regulatory uncertainty complicating the behind-the-meter contracting opportunity set, it now applies a 20% risk weighting, from 33% prior, to the incremental EBITDA and market cap created under a “blue sky scenario,” where each company contracts all open nuclear capacity at $80/MWh. However, with independent power producer sentiment “appearing very bearish,” the space is “washed out,” the analyst tells investors in a research note. As such, JPMorgan remains constructive on the shares.