Seaport Global Turns Bullish on Constellation Energy (CEG) Ahead of Calpine Acquisition

Group 1 - Constellation Energy Corporation (NASDAQ:CEG) has been upgraded to "Buy" from Neutral by Seaport Global Securities due to rising cash flows among thermal independent power producers and the pending acquisition of Calpine [1][2] - The upgrade is supported by factors such as higher power and capacity prices, lower interest rates, and no cash taxes impacting thermal IPPs [1] - The merger with Calpine is expected to close within the next 30 days, and the company is anticipated to perform well leading into its refreshed earnings update [2] Group 2 - CEG is projected to trade at 10.3x 2027 EV/EBITDA and a 7.7% 2027 FCF yield based on updated estimates post-Calpine merger [2] - The multiples for CEG are considered rich compared to its closest peer, VST, due to CEG's size and its nuclear/gas earnings mix [2] - Regulatory reforms in California's resource adequacy market are being monitored, especially given elevated RA prices in Northern California [2]