Constellation Energy leads clean energy stocks higher as Senate plan proceeds

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Justin Paget

Constellation Energy (NASDAQ:CEG) +7.7% in Friday’s trading after surging as much as 13% to a record high, as the U.S. Senate climate and energy plan looks set for passage after Senator Kyrsten Sinema said an agreement was reached to remove an increase in taxes on carried interest income.

Also, UBS upgraded Constellation (CEG) to Buy from Neutral with a $97 price target, as the nuclear production tax credit now looks “very likely” to pass as part of the Senate bill, which analyst Ross Fowler believes would “set a floor under prices and make Constellation essentially a long-term contracted asset” with upside at higher energy prices.

Array Technologies (ARRY), Sunnova (NOVA) and Sunrun (RUN) all trade higher after Barclays initiated the stocks with Overweight ratings, which said “the case for solar is as attractive as it’s ever been and this secular growth trend will continue.”

Clean energy stocks generally trade higher, although off earlier highs, including (NASDAQ:CLNE) +16.3%, (STEM) +8.2%, (PLUG) +3.5%, (SPWR) +3.4%, (BE) +3.1%, (FCEL) +3%.

Solar shares have been rising since last week when Senator Joe Manchin and Majority Leader Chuck Schumer announced a surprise deal that includes $369B for energy and climate change.

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