BofA Securities maintains buy rating on Constellation Energy stock

On Tuesday, BofA Securities analysts reiterated their Buy rating for Constellation Energy stock (NASDAQ: NASDAQ:CEG), maintaining the price target at $318.00. The stock, which has gained over 41% in the past year and is currently trading near its 52-week high of $136.31, appears overvalued according to InvestingPro Fair Value analysis. The reaffirmation follows Constellation Energy’s announcement of a 20-year Purchased Power Agreement (PPA) with Meta (NASDAQ:META). For deeper insights into CEG’s valuation and 15+ additional key metrics, check out the comprehensive Pro Research Report, available exclusively on InvestingPro.

The agreement involves the output of the Clinton Clean Energy Center, where Constellation Energy plans to invest in increasing the facility’s capacity by 30 megawatts, adding to its current nameplate of 1,121 megawatts. The company is also considering strategies to extend the plant’s early site permit or to seek a new construction permit from the Nuclear Regulatory Commission (NRC).

Potential new construction at the facility could include either a Small Modular Reactor (SMR) or a large AP1000 type unit. These developments align with previous management statements, although financial specifics of the transaction remain undisclosed.

BofA Securities analysts assume the economics of this agreement are consistent with similar industry deals, which typically carry a $20 per megawatt-hour premium to market. The analysts maintain their positive outlook on Constellation Energy, reflecting confidence in the company’s strategic initiatives.

In other recent news, BWX Technologies (NYSE:BWXT) Inc. reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations with an earnings per share of $0.91 and revenue of $682.3 million. This performance exceeded forecasts of $0.77 EPS and $648.7 million in revenue. Additionally, William Blair initiated coverage on BWX Technologies with an Outperform rating, emphasizing the company’s robust position in the nuclear energy market and potential growth in commercial nuclear power. In management changes, BWX Technologies announced the resignation of CFO Robb A. LeMasters, appointing Mike T. Fitzgerald as interim CFO. The company also awarded its CEO, Rex D. Geveden, a $5.5 million incentive package tied to performance targets. Furthermore, BWX Technologies amended its Restated Certificate of Incorporation to limit officer liability, following stockholder approval. These developments reflect BWX Technologies’ strategic positioning and ongoing efforts to align executive compensation with performance and shareholder interests.

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