BMO Capital raised the firm’s price target on Constellation Energy (CEG) to $350 from $337 and keeps an Outperform rating on the shares. The firm cites the company announcement that it has signed a 20-year virtual PPA with Meta Platforms (META) to purchase the entire carbon-free output from its Clinton Nuclear facility starting in June 2027, and while discrete economics of the transaction were not disclosed, BMO’s initial base case assumption is $80/MWh, escalating at 3.0% annually, the analyst tells investors in a research note. BMO is positive on the company’s position as the largest producer of carbon-free generation, with low leverage and burgeoning clean product strategy that will enable its customers to accelerate their own decarbonization goals.
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