Latest news with #RossFowler
Yahoo
2 days ago
- Business
- Yahoo
BofA Lifts Constellation Energy (CEG) Price Target to $343 After Meta Power Deal
We recently published a list of . 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 3rd, 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. A winemaker examining a glass of red wine from a barrel in a cellar. 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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
BofA Lifts Constellation Energy (CEG) Price Target to $343 After Meta Power Deal
We recently published a list of . 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 3rd, 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. A winemaker examining a glass of red wine from a barrel in a cellar. 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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-05-2025
- Business
- Yahoo
BofA upgrade Southwest Gas to Neutral, says Centuri transaction removes overhang
As previously reported, BofA analyst Ross Fowler upgraded Southwest Gas (SWX) to Neutral from Underperform with a price target of $74, up from $69. The firm, which sees a balanced risk/reward profile with initial monetization action taken to reduce the overhang from the pending Centuri (CTRI) separation, also cites an improving view of the regulatory construct in Arizona. Southwest completed a 9M share secondary offering of a portion of their ownership in Centuri, along with a $50M private placement of shares to Icahn Investors, notes the firm, whose calculations show Southwest receiving about $225M in net proceeds from the offerings, taking care of 2025-2026 equity needs. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on SWX: Disclaimer & DisclosureReport an Issue Southwest Gas upgraded to Neutral from Underperform at BofA Southwest Gas Completes Share Offering and Private Placement Centuri files to sell 9M shares of common stock for holders Southwest Gas to offer 9M shares of Centuri common stock Icahn boosts stakes in CVR Partners, JetBlue, Illumina Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-01-2025
- Business
- Yahoo
'Tourists' who invaded utilities have gotten a wild ride: Morning Brief
Power providers' stock performance over the past year has mirrored the industry they were drafting on. The S&P Utility Index climbed 20% in 2024, with names like Vistra and Constellation Energy soaring far more. In fact, Vistra, which owns both power generation and retail electricity operations, rose 258% last year, topping Nvidia. That increase was predicated on the idea that these typically snoozy companies would see a sea change in growth based on demand for power for AI data centers. One catalyst was Microsoft's commitment to Constellation Energy last year to buy power at far above-market rates from a restarted Three Mile Island nuclear reactor. The stock surge has been quite a shift for a sector that investors usually favor for its stability and dividend payouts. For some longtime analysts, it has meant utility stocks have gotten ahead of themselves. 'This is what happens when tourists invade a value space and they just push these stocks up to huge valuations,' Anthony Crowdell, who covers the sector for Mizuho, told Yahoo Finance in an interview. He emphasized that while there's speculation of further Microsoft-style deals, it is so far the only one. And then DeepSeek's R1 release brought the momentum to a screeching halt after it triggered questions about whether generative AI training and inference can happen more efficiently, meaning less power will be needed. The lofty valuations made for long falls — Constellation opened Monday around 20% down from Friday's close. With the tech sector, investors have become accustomed to big growth and big valuations, as well as the volatility that can sometimes accompany shifting expectations. While some have argued that AI will revolutionize how people live and work and predict more growth for megacap tech stocks, it's more of a continuation of their existing business than a fundamental reworking. Contrast that with utilities, a classic value sector (that is, lower growth and lower price-to-earnings ratio) that has been trading like growth. Some analysts still see it that way. 'We believe that this sell-off was an overreaction to this news, and data center demand is likely to continue over the intermediate term,' Bank of America analysts led by Ross Fowler wrote in a note to clients this week. Still, they acknowledged, 'The longer term has a lower probability of the mega growth bull case, and there is a slightly higher downside risk to efficiency gains sooner than we anticipate.' The so-called hyperscalers — giants like Alphabet, Microsoft, and Amazon — haven't indicated they're slowing down their data center buildouts. Indeed, on Microsoft's earnings call, CFO Amy Hood said the company's constraints on this front have been 'power and space.' That brought the 'tourists' flooding back to utility shares on Thursday. A longer stay might depend on whether tech giants' spending plans convert to actual agreements with utilities. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
'Tourists' who invaded utilities have gotten a wild ride: Morning Brief
Power providers' stock performance over the past year has mirrored the industry they were drafting on. The S&P Utility Index climbed 20% in 2024, with names like Vistra and Constellation Energy soaring far more. In fact, Vistra, which owns both power generation and retail electricity operations, rose 258% last year, topping Nvidia. That increase was predicated on the idea that these typically snoozy companies would see a sea change in growth based on demand for power for AI data centers. One catalyst was Microsoft's commitment to Constellation Energy last year to buy power at far above-market rates from a restarted Three Mile Island nuclear reactor. The stock surge has been quite a shift for a sector that investors usually favor for its stability and dividend payouts. For some longtime analysts, it has meant utility stocks have gotten ahead of themselves. 'This is what happens when tourists invade a value space and they just push these stocks up to huge valuations,' Anthony Crowdell, who covers the sector for Mizuho, told Yahoo Finance in an interview. He emphasized that while there's speculation of further Microsoft-style deals, it is so far the only one. And then DeepSeek's R1 release brought the momentum to a screeching halt after it triggered questions about whether generative AI training and inference can happen more efficiently, meaning less power will be needed. The lofty valuations made for long falls — Constellation opened Monday around 20% down from Friday's close. With the tech sector, investors have become accustomed to big growth and big valuations, as well as the volatility that can sometimes accompany shifting expectations. While some have argued that AI will revolutionize how people live and work and predict more growth for megacap tech stocks, it's more of a continuation of their existing business than a fundamental reworking. Contrast that with utilities, a classic value sector (that is, lower growth and lower price-to-earnings ratio) that has been trading like growth. Some analysts still see it that way. 'We believe that this sell-off was an overreaction to this news, and data center demand is likely to continue over the intermediate term,' Bank of America analysts led by Ross Fowler wrote in a note to clients this week. Still, they acknowledged, 'The longer term has a lower probability of the mega growth bull case, and there is a slightly higher downside risk to efficiency gains sooner than we anticipate.' The so-called hyperscalers — giants like Alphabet, Microsoft, and Amazon — haven't indicated they're slowing down their data center buildouts. Indeed, on Microsoft's earnings call, CFO Amy Hood said the company's constraints on this front have been 'power and space.' That brought the 'tourists' flooding back to utility shares on Thursday. A longer stay might depend on whether tech giants' spending plans convert to actual agreements with utilities. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
