Constellation Energy's Microsoft Deal Sparks Long-Term Growth: Analysts Raise Price Forecasts Amid Nuclear Revival
Portfolio Pulse from Lekha Gupta
Constellation Energy Corporation (NASDAQ:CEG) has signed a 20-year power purchase agreement with Microsoft, leading to a rise in analyst price targets. The deal involves the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1. Analysts have raised price targets for CEG, with KeyBanc, Evercore ISI, Wells Fargo, and Morgan Stanley all increasing their targets. The deal is expected to positively impact CEG's long-term growth, although the immediate stock price remains relatively flat.

September 23, 2024 | 6:00 pm
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Constellation Energy's 20-year deal with Microsoft has led to increased analyst price targets, indicating positive long-term growth prospects. The deal involves the Crane Clean Energy Center and the restart of Three Mile Island Unit 1.
The partnership with Microsoft and the restart of Three Mile Island Unit 1 are significant developments for CEG, leading to increased analyst price targets. This indicates strong long-term growth potential, although the immediate stock price impact is neutral.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Constellation Energy's growth through the Strive Natural Resources and Security ETF (NYSE:FTWO), which includes CEG in its portfolio.
FTWO includes CEG in its portfolio, allowing investors to benefit from CEG's potential growth following the Microsoft deal. The ETF's performance may be positively influenced by CEG's long-term prospects.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Virtus Reaves Utilities ETF (NYSE:UTES) offers investors exposure to Constellation Energy's growth potential following its deal with Microsoft.
UTES includes CEG in its holdings, providing investors with exposure to CEG's growth potential after the Microsoft deal. The ETF's performance may benefit from CEG's long-term growth prospects.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50