Market CompetitionThe generative AI thematic will begin to fade for the nuclear IPPs, largely due to front of the meter virtual PPAs allowing for lower cost renewables to compete.
Regulatory RisksRegulatory approval is the key question, with CEG disclosing plans for limited PJM asset sales as part of its FERC mitigation plan, and management expects a protracted process and likely opposition from stakeholders.
ValuationCEG's valuations are considered rich at forward PE of 30x, suggesting investors should find better entry points.