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Investing.com - Jefferies has raised its price target on Constellation Energy (NASDAQ:CEG) to $293.00 from $223.00 while maintaining a Hold rating on the stock. The company, currently trading at $323.70 with a market capitalization of $101.45 billion, has delivered impressive returns of 45% year-to-date and 86% over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.
The research firm’s updated valuation reflects a significant increase in the implied data center value for the company, which Jefferies estimates now accounts for approximately $95 per share, or about 30% of the current stock price.
In its analysis, Jefferies now assumes 75% odds that approximately 60% of Constellation’s nuclear portfolio will be valued at $85 per megawatt-hour, plus the Clinton and Crane power purchase agreements.
Despite the substantial price target increase, Jefferies continues to view Constellation Energy shares as "relatively pricey" compared to industry peers.
The firm noted that the current share price embeds "a very significant ’market share’ of future data center awards," suggesting the stock may already be pricing in considerable future growth opportunities.
In other recent news, Constellation Energy has received regulatory approvals from both the New York State Public Service Commission and the Public Utility Commission of Texas for its acquisition of Calpine Corporation. This merger is a significant move, bringing together Constellation’s nuclear fleet with Calpine’s natural gas and geothermal assets. Additionally, BMO Capital has raised its price target for Constellation Energy to $350, maintaining an Outperform rating. This follows the announcement of a 20-year virtual power purchase agreement with Meta Platforms (NASDAQ:META) involving Constellation’s Clinton Nuclear facility. Moreover, KeyBanc has reiterated its Overweight rating for Constellation Energy, citing positive results from PJM’s Base Residual Auction for the 2026/2027 planning year. Mizuho (NYSE:MFG) also adjusted its price target for the company to $325 while maintaining a Neutral rating. These developments reflect a period of strategic growth and financial adjustments for Constellation Energy.
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