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Constellation Energy initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Constellation Energy (CEG) with an Overweight rating and $342 price target The firm initiated coverage of the independent power producers with a positive sector view, even when considering the year-to-date stock price strength. It sees structural tailwinds, including manufacturing onshoring, broader electrification trends as well data center development underpinning a “paradigm shift” in power demand. JPMorgan does not see competitive market supply growth matching this demand, enabling the companies to capture outsized margins for an extended period of time. The firm sees Vistra (VST) as having the most attractive risk/reward profile.

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