Oct. 8 at 7:03 PM
Constellation Energy Group was upgraded by Seaport Research Partners from Neutral to Buy, citing stronger cash flows among thermal independent power producers (IPPs) and the company’s pending acquisition of Calpine.
Seaport said thermal IPP cash flows are improving due to higher energy and capacity prices, lower interest rates, and the absence of cash taxes. The firm expects more DC power deals, M&A activity, and positive earnings revisions for thermal IPPs before the end of 2025.
The Calpine merger is expected to close within 30 days. Seaport noted that given the sharp rise in EBITDA and FCL estimates for CEG+Calpine and CEG’s underperformance versus peers over the past year, investors should maintain long positions until the post-merger earnings update.
Analysts set a
$407 price target, adding that while the Calpine merger won’t qualify for bonus depreciation under OBBB.
$CEG