Bank of America Securities analyst Ross Fowler has reiterated their bullish stance on CEG stock, giving a Buy rating today.
Ross Fowler has given his Buy rating due to a combination of factors influencing Constellation Energy Corporation’s positive outlook. The company has shown a year-over-year increase in earnings, driven by favorable market conditions and higher prices, despite a slight offset from lower Production Tax Credit revenue. Constellation Energy’s management has expressed optimism about future growth, particularly through large load deals and potential long-term power purchase agreements, which are expected to be beneficial given the current market dynamics.
Furthermore, the recent acquisition of Calpine is seen as increasingly attractive due to the tightening power markets and rising demand, particularly in high-growth regions like PJM and ERCOT. This acquisition positions Constellation Energy to capitalize on existing assets and future opportunities, supporting the company’s earnings growth and justifying the increased price objective of $318. The company’s maintained EPS guidance and projected compound annual growth rate further reinforce the Buy rating.
CEG’s price has also changed moderately for the past six months – from $234.990 to $273.820, which is a 16.52% increase.