BMO Capital Markets lowered its price target on Constellation Energy to $350 from $379. The firm maintained an Outperform rating. This adjustment followed a 20-year power purchase agreement with Amazon. The agreement covers 690 megawatts from the Calvert Cliffs nuclear plant.
BMO Capital estimates the deal implies a price of about $85 per megawatt-hour. It could contribute approximately $0.70 to EPS at its full run rate. BMO Capital noted that long-duration contracts at premium prices drive value for the company. The deal with Amazon enables over $3 billion in infrastructure investment. It also supports relicensing the plant for an additional 20 years.