Constellation Energy price target lowered to $223 from $274 at Jefferies

Jefferies lowered the firm’s price target on Constellation Energy (CEG) to $223 from $274 and keeps a Hold rating on the shares. Constellation shares price in nearly $70 per share in data center value today, or about 30% of the price of the stock, estimates the analyst, who assumes 50% odds of about 60% of the nuclear portfolio at $80/MWh. Despite shares being down 30% from mid-February, the firm still views the stock as “pricey” when adjusting for current multiples, adds the analyst. Constellation prices in more than its peers, while the likelihood of upside from nuclear data center contracts is diminishing due to a political focus on affordability and reliability, the analyst argues.