BofA Lifts Constellation Energy (CEG) Price Target to $343 After Meta Power Deal

We recently published a list of 10 Trending AI Stocks on Wall Street Right Now. In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against other trending AI stocks on Wall Street right now.

On June 3^rd, BofA Securities analyst Ross Fowler reiterated a “Buy” rating on Constellation Energy Corporation (NASDAQ:CEG) and increased the price target from $318.00 to $343.

The rating reaffirmation follows Constellation’s announcement of a 20-year Purchased Power Agreement (PPA) with Meta Platforms at its Clinton nuclear site. Constellation plans to increase the facility’s capacity by 30 megawatts, adding to its current nameplate of 1,121 megawatts.

The company also plans to extend the site’s early site permit or seek a new construction permit from the Nuclear Regulatory Commission (NRC). Further development at the site may include s Small Modular Reactor (SMR) or a large AP1000 type unit, aligning with previous management statements.

The firm has therefore updated its target as it adjusted EPS estimates to incorporate the PPA and also adjusted its nuclear multiple to 14 times, up from the previous 11 times, based on the increasing likelihood of datacenter deals. Due to increasing regulatory clarity and incremental deals, the firm is optimistic that more datacenter deals are on the horizon.

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.

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Disclosure: None. This article is originally published at Insider Monkey.