Analysts Rally Behind These Nuclear Leaders As White House Unveils Expansion Blitz

Analysts gave favorable comments on nuclear energy suppliers Constellation Energy (CEG) and Vistra (VST), as the Trump administration launched an initiative to boost its goal of quadrupling U.S. nuclear power.

BNP Paribas initiated coverage of Constellation Energy with an outperform rating and 407 price target Wednesday, according to MT Newswires. It is the latest bullish recommendation for Constellation, joining 14 other analysts who have buy or outperform ratings. Four others have hold ratings, according to FactSet.

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Baltimore-based Constellation Energy is the largest private owner of nuclear generation in the world. The stock has an IBD Composite Rating of 57. Shares rose 3.1% to 317.22 on Wednesday, recently meeting resistance at the 200-day moving average. The stock is down 10% year to date, according to IBD MarketSurge.

After the close, CEG stock rose 1% after Constellation Energy agreed to sell some generation assets to LS Power Equity Advisors. The $5 billion deal will help satisfy regulator commitments related to Constellation’s acquisition of Calpine.

Another Nuclear Energy Upgrade

Meanwhile, Fitch Ratings upgraded Vistra to investment grade this week. The new rating, BBB‑, reflects the utility’s improved business profile, strong credit metrics, supportive capital allocation and improving market fundamentals, the company said.

It’s the second boost to Vistra’s credit profile, after S&P Global Ratings made its own upgrade to an investment-grade rating in December.

Irving, Texas-based Vistra is one of the largest power generators in the country, with a portfolio of natural gas, nuclear, coal and solar plants.

Vistra stock rose 3.5% to 170.12 on Wednesday and is also below the 200-day moving average, but up more than 5% year to date. It has a 42 Composite Rating.

Trump Administration Pushes Nukes

The White House is making a big push for more nuclear energy and has set an ambitious goal of expanding U.S. nuclear energy capacity from 100 gigawatts today to 400 gigawatts by 2050. (One gigawatt can power roughly 300,000 to 700,000 homes.)

The administration views nuclear plants as an important path to energy security and continued independence. Surging electricity demand for data centers is also driving interest in nuclear power.

This month, the U.S. Department of Energy announced an initiative to put more power on the grid using existing nuclear energy plants. The Utility Power Reactor Incremental Scaling Effort, or UPRISE, seeks to increase the output of existing reactors, bring dormant facilities back online and complete stalled projects.

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The government is putting its own money on the table to bootstrap the initiative. The Office of Energy Dominance Financing is providing more than $289 billion in loans. The loans could finance up to 80% of eligible projects. The program, the Energy Department said, aims to create 2.5 gigawatts of additional nuclear capacity by 2027 and 5 gigawatts by 2029.

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