$CEG Got Good Contract from $META, but the Current Price seems High

Twelve_E
06-04

$Constellation Energy Corp(CEG)$ once surged more than 7% after it announced a 20-year power purchase agreement with $Meta Platforms, Inc.(META)$ on Tuesday trading.

It closed at $313.03 with a -0.13% decline from the open price.

Now $Constellation Energy Corp(CEG)$ at a price very close to its historical high price.

A detail a look for the coming corpotation.

Under the deal, Meta will buy about 1.1 gigawatts of power from Constellation's Clinton Clean Energy Center in Illinois starting in June 2027, equivalent to the full output of a single reactor at the site.

The long-term agreement will not only ensure the continued operation of the Clinton nuclear plant but also help it secure relicensing after state subsidies expire. Constellation also plans to invest in increasing the plant's power capacity and is considering building a second reactor at the site, which has received federal approval.

Joe Dominguez, Constellation's CEO, said the company is proud to partner with Meta and emphasized that supporting the relicensing and expansion of existing nuclear plants is as important as finding new sources of energy.

How about the fundamentals of $Constellation Energy Corp(CEG)$

Data Center Projects:

Constellation Energy is increasingly focusing on data center projects connected to the US electric grid, which represents a shift from its previous strategy of directly powering large server farms from power plants.

Acquisition Plans:

The company plans to acquire natural gas and geothermal company Calpine for $26.6 billion, with the transaction expected to be completed by the end of 2025.

Financial Health:

  • First Quarter of 2025: The company's first-quarter revenue increased by 10.2% year-over-year, reaching $6.79 billion, which is much higher than the analysts' expectation of $5.44 billion. The adjusted earnings per share were $2.14, slightly below the market expectation of $2.18.

  • Full-Year Earnings Guidance: The company reaffirmed its full-year earnings guidance for 2025, expecting the adjusted earnings per share to be between $8.90 and $9.60.

In Conclusion, Constellation Energy is showing positive signs in both financial performance and business development.

Valuations and analysts ratings:

Accroding to TIGER APP data, the current forwardPE for $Constellation Energy Corp(CEG)$ is at 33.65, which is higher than the average data of 16.2 in 10years.

Positively speaking, 0 out of 17 analysts give sell rating, most are in buy and strong buy ratings.

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