BofA reiterates a Buy rating and $269 price target on Constellation Energy (CEG) after the company announced being awarded more than $1B in contracts by the General Services Administration, including a 10-year $840M contract to supply the GSA with more than 1 million MWhs annually and a $172M Energy Savings Performance Contract to improve energy efficiency. In addition to being the largest energy procurement in GSA history, it is at a significant premium to PJM power prices, notes the analyst, who sees the deal leading to a 11c increase in 2025 earnings and a 12c increase in 2026 earnings compared to the firm’s prior forecasts.
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