Constellation Energy price target raised to $211 from $119 at RBC Capital

RBC Capital analyst Shelby Tucker raised the firm’s price target on Constellation Energy to $211 from $119 but keeps a Sector Perform rating on the shares. High power prices and a renewed interest in carbon-free energy sources for datacenters have led to expectations that a significant demand exists for PPAs well above market prices for nuclear power, the analyst tells investors in a research note. RBC adds however that while Constellation Energy should benefit from the upside opportunities of load growth while being protected from the downside from the Nuclear PTC, or Production Tax Credit, the current valuation seems to already support the robust outlook.