RBC Capital raised the firm’s price target on Constellation Energy (CEG) to $272 from $214 and keeps a Sector Perform rating on the shares. The decision to reopen Unit-1 of Three Mile Island was not surprising, given the financial support of the PTC – Production Tax Credit – but the concurrent announcement of a deal with Microsoft (MSFT) for the full output of the plant for data center load was a surprise, the analyst tells investors in a research note. While pricing details were not disclosed, the firm is estimated $40/MWh above current forward prices, highlighting the “strong market interest” for 24/7 renewable power, RBC added.
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