Falling Commodity Prices To Continue To Affect CEG’s Earnings

Analysts at SunTrust Robinson Humphrey maintain their "neutral" rating on Constellation Energy Group (NYSE: CEG).

According to SunTrust Robinson Humphrey, the CEG’s earnings outlook will continue to be adversely affected by the ongoing decline in commodity prices. The probability of Constellation Energy exercising its put option with EDF is quite low, the analysts say.

SunTrust Robinson Humphrey does not expect CEG to make any buybacks in the near future, since the company is currently focusing on acquiring generation assets. Constellation Energy’s share price is unlikely to rise till commodity prices improve and there is clarity on the company’s use of excess cash, the analysts add.

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