Wells Fargo Initiating Coverage On Constellation Energy Group

Wells Fargo is out with a research report on Constellation Energy Group, Inc. CEG and is initiating coverage with a Market Perform rating and a $43-$44 price target on shares. In a note to clients, Wells Fargo writes, "We are initiating coverage of CEG with a Market Perform rating and 12-18 month valuation range of $43-44 per share (derived from our $46-48 valuation range for EXC). Our 2011-13 EPS estimates are $3.20, $2.45 and $2.95. Our coverage initiation is driven principally by our existing coverage on shares of Exelon and our desire to better understand the merged company's financial prospects rather than simply rely on consensus EPS estimates for CEG." Shares of CEG gained 8 cents yesterday to close at $38.91.