Jefferies Revises CEG Estimates

Following an update of its Constellation Energy Group CEG forecast model, Jefferies is revising its estimates and price target. “[We] estimate a four-year compound annual decrease in Constellation earnings of 2.9% through 2014,” Jefferies writes. “The forecast includes earnings growth at the utility and retail supply business offset by a decrease in the contribution of the generation segment. “Constellation has significantly reduced the level of its merchant debt following the sale of a 49.9% interest in its nuclear plants to EDF. “Transmission constraints in Eastern PJM provides for an expected meaningful contribution from robust capacity prices in the foreseeable future.” Constellation Energy Group closed Monday at $28.81.