Constellation Energy price target raised to $249 from $227 at UBS

UBS raised the firm’s price target on Constellation Energy to $249 from $227 and keeps a Buy rating on the shares. UBS attributes the recent pullback in the shares to a general unwind of the AI/Power demand trade broadly, but does not think the fundamental backdrop has deteriorated and thinks Constellation is largely pricing in the full value of the nuclear tax credits/subsidies at full infrastructure valuation, but believes the upside from here is driven by margin upside from higher wholesale prices and more specifically from the potential for additional earnings and cash flow via contracted sales, the analyst tells investors in a research note.