Melius initiates Constellation Energy stock with Buy rating on nuclear dominance

Published 20/08/2025, 12:36
Melius initiates Constellation Energy stock with Buy rating on nuclear dominance

Investing.com - Melius Research initiated coverage on Constellation Energy (NASDAQ:CEG) with a Buy rating and a price target of $462.00 on Wednesday. According to InvestingPro data, the stock appears overvalued relative to its Fair Value, despite showing strong momentum with a 67% gain over the past year.

The research firm cited Constellation’s dominant position in carbon-free power generation, particularly highlighting its leadership in nuclear power production.

According to Melius, Constellation generates approximately 10% of all power in the United States and serves three-quarters of Fortune 500 companies along with over 2 million residential customers.

The firm noted that Constellation’s pending Calpine acquisition will further strengthen its already significant market presence.

Constellation Energy is the largest producer of carbon-free energy in the U.S., with nuclear power generation forming the core of its business operations.

In other recent news, Constellation Energy reported second-quarter 2025 adjusted earnings per share of $1.91, surpassing the consensus estimate of $1.85. The company has reaffirmed its full-year guidance range of $8.90 to $9.60. Following these results, several financial firms have adjusted their price targets for Constellation Energy. BofA Securities raised its target to $374, maintaining a Buy rating, while Mizuho (NYSE:MFG) adjusted its target to $335 with a Neutral rating. BMO Capital increased its price target to $375, keeping an Outperform rating. Raymond (NSE:RYMD) James also raised its target to $393, highlighting Constellation Energy’s position as a major independent power producer in the U.S. KeyBanc increased its price target to $359, citing the company’s performance slightly ahead of expectations and its reiterated guidance. These developments reflect a positive outlook from analysts following the recent earnings report.

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