Keybanc Maintains Overweight on Constellation Energy, Raises Price Target to $230
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
0mins
Should l Buy CEG?
Source: Benzinga
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Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 303.010
Low
350.00
Averages
414.86
High
460.00
Current: 303.010
Low
350.00
Averages
414.86
High
460.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy in the United States. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. Its nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GWs of natural gas, oil, hydroelectric, wind, and solar generation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Constellation Energy Set to Report Earnings Soon
- Earnings Announcement: Constellation Energy is expected to report its fourth-quarter and full-year earnings before February 20, with analysts projecting adjusted earnings per share between $3.03 and $3.43, reflecting strong growth in its nuclear and commercial performance.
- Performance Growth: In its last earnings report, Constellation posted adjusted earnings of $3.04 per share, an 11% increase from $2.74 in the previous year, indicating significant operational efficiency improvements in its nuclear fleet, as highlighted by the CEO's remarks on operational and financial execution.
- Acquisition Impact: The $26.6 billion acquisition of Calpine is anticipated to boost Constellation's earnings by over 20% this year, strategically enhancing its market position in both nuclear and natural gas sectors.
- Investment Plans: The U.S. Nuclear Regulatory Commission has approved a license amendment for the Limerick Clean Energy Center, paving the way for over $500 million in investments to modernize and upgrade these facilities, ensuring their reliability for decades to come.
See More
Daniel Loeb Reshuffles Third Point Portfolio
- Portfolio Restructuring: Billionaire hedge fund manager Daniel Loeb reshuffled his Third Point LLC portfolio in Q4 2025, adding several new consumer and international investments, indicating a pursuit of market diversification.
- Reduced Mega-Cap Exposure: In the latest Form 13F filing, Loeb trimmed stakes in select mega-cap and semiconductor names, reflecting a cautious stance towards these sectors, possibly due to concerns over market volatility.
- New Buy Highlights: Among the new acquisitions, Loeb focused on consumer goods and international markets, likely aiming to capture opportunities arising from global economic recovery and enhance the growth potential of his portfolio.
- Regulatory Transparency: Loeb's portfolio changes are disclosed through the 13F filing as required by the U.S. Securities and Exchange Commission, increasing transparency for the hedge fund and helping investors better understand its investment strategies and market outlook.
See More
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- Chipotle Investment: Daniel Loeb's Third Point acquired a position worth over $174 million in Chipotle during Q4 2025, despite the stock's decline of over 5% in the last quarter, with analysts maintaining buy ratings and an estimated 18% upside potential.
- Spotify Position: Loeb invested $58 million in Spotify in the same quarter, which saw a drop of more than 16%, yet finished the year nearly 30% higher, indicating market confidence in its growth, with analysts suggesting a potential increase of over 42%.
- Union Pacific Stake Increase: Loeb also more than doubled his position in Union Pacific, raising its value to over $418 million, making it the fund's fifth-largest holding, reflecting a positive outlook on the railroad sector despite challenging market conditions.
- New and Reduced Positions: In addition to increasing stakes, Loeb established new positions in Constellation Energy and Alibaba while selling off shares in Flutter, Meta, and Talen Energy, demonstrating a strategic adjustment of his portfolio amid market volatility.
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U.S. Nuclear Expansion Collides with Uranium Supply Constraints
- Nuclear Expansion Initiative: President Trump's signing of four executive orders aims to quadruple U.S. nuclear capacity over the next 25 years, addressing the surging electricity demand driven by sectors like AI and quantum computing.
- Uranium Supply Shortage: With projections indicating a significant increase in uranium demand by 2026, domestic mine production is failing to meet reactor requirements, leading to a structural supply deficit that heightens investor focus on resource control.
- Merger Progress: The merger between Spring Valley Acquisition Corp. II and Eagle Energy Metals is advancing, with the SEC declaring its registration statement effective, and a shareholder vote scheduled for February 23, 2026, marking a critical step towards NASDAQ listing.
- Technological Investment: Eagle Energy Metals is collaborating with BBA USA Inc. to design a drilling campaign at the Aurora uranium project to support a Pre-Feasibility Study, which is expected to enhance its competitiveness in the U.S. uranium market to meet rising nuclear energy demands.
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- Nuclear Capacity Expansion: President Trump's signing of four executive orders aims to quadruple U.S. nuclear capacity over the next 25 years, addressing the increasing electricity demand driven by emerging technologies like AI and quantum computing that strain the grid.
- Merger Progress: The merger between Spring Valley Acquisition Corp. II and Eagle Energy Metals has received SEC registration approval, with a shareholder meeting scheduled for February 23, 2026, marking a significant step towards its NASDAQ listing.
- Uranium Supply Chain Investment: The U.S. Department of Energy's allocation of $2.7 billion to expand domestic uranium enrichment is expected to create thousands of jobs, further solidifying America's leadership in the global nuclear fuel supply chain.
- Mineral Resource Development: Eagle Energy Metals holds rights to a 32.75 million-pound uranium deposit on the Oregon-Nevada border and is collaborating with BBA USA Inc. on drilling activities to support its feasibility study, ensuring its asset can meet the growing uranium demand.
See More
Constellation Energy Stock Drops 32% Due to Regulatory Pressure
- Stock Decline: Constellation Energy's stock has fallen 32% since its October peak, currently trading below $290, indicating market concerns about its future earnings amid proposed regulatory caps on electricity rates.
- Auction Success: The company successfully cleared all capacity in the recent 2027-2028 auction, expected to generate revenue at a clearing price of $333.44 per megawatt-day, providing short-term financial stability for the firm.
- Long-Term Agreements: Constellation has signed long-term fixed-price power purchase agreements with major tech companies like Microsoft and Meta, which not only lock in revenue but also hedge against volatility in wholesale markets, showcasing its strategic flexibility in the energy sector.
- Competitive Market Pressure: Despite strong auction performance, regulatory measures could limit future profit potential, particularly in the highly competitive PJM market, where price caps may impact its profitability as a wholesale power producer.
See More
Constellation Energy Set to Report Earnings Soon
- Earnings Announcement: Constellation Energy is expected to report its fourth-quarter and full-year earnings before February 20, with analysts projecting adjusted earnings per share between $3.03 and $3.43, reflecting strong growth in its nuclear and commercial performance.
- Performance Growth: In its last earnings report, Constellation posted adjusted earnings of $3.04 per share, an 11% increase from $2.74 in the previous year, indicating significant operational efficiency improvements in its nuclear fleet, as highlighted by the CEO's remarks on operational and financial execution.
- Acquisition Impact: The $26.6 billion acquisition of Calpine is anticipated to boost Constellation's earnings by over 20% this year, strategically enhancing its market position in both nuclear and natural gas sectors.
- Investment Plans: The U.S. Nuclear Regulatory Commission has approved a license amendment for the Limerick Clean Energy Center, paving the way for over $500 million in investments to modernize and upgrade these facilities, ensuring their reliability for decades to come.
See More
Daniel Loeb Reshuffles Third Point Portfolio
- Portfolio Restructuring: Billionaire hedge fund manager Daniel Loeb reshuffled his Third Point LLC portfolio in Q4 2025, adding several new consumer and international investments, indicating a pursuit of market diversification.
- Reduced Mega-Cap Exposure: In the latest Form 13F filing, Loeb trimmed stakes in select mega-cap and semiconductor names, reflecting a cautious stance towards these sectors, possibly due to concerns over market volatility.
- New Buy Highlights: Among the new acquisitions, Loeb focused on consumer goods and international markets, likely aiming to capture opportunities arising from global economic recovery and enhance the growth potential of his portfolio.
- Regulatory Transparency: Loeb's portfolio changes are disclosed through the 13F filing as required by the U.S. Securities and Exchange Commission, increasing transparency for the hedge fund and helping investors better understand its investment strategies and market outlook.
See More
Daniel Loeb's Third Point Invests in Chipotle and Spotify Amid Market Struggles
- Chipotle Investment: Daniel Loeb's Third Point acquired a position worth over $174 million in Chipotle during Q4 2025, despite the stock's decline of over 5% in the last quarter, with analysts maintaining buy ratings and an estimated 18% upside potential.
- Spotify Position: Loeb invested $58 million in Spotify in the same quarter, which saw a drop of more than 16%, yet finished the year nearly 30% higher, indicating market confidence in its growth, with analysts suggesting a potential increase of over 42%.
- Union Pacific Stake Increase: Loeb also more than doubled his position in Union Pacific, raising its value to over $418 million, making it the fund's fifth-largest holding, reflecting a positive outlook on the railroad sector despite challenging market conditions.
- New and Reduced Positions: In addition to increasing stakes, Loeb established new positions in Constellation Energy and Alibaba while selling off shares in Flutter, Meta, and Talen Energy, demonstrating a strategic adjustment of his portfolio amid market volatility.
See More
U.S. Nuclear Expansion Collides with Uranium Supply Constraints
- Nuclear Expansion Initiative: President Trump's signing of four executive orders aims to quadruple U.S. nuclear capacity over the next 25 years, addressing the surging electricity demand driven by sectors like AI and quantum computing.
- Uranium Supply Shortage: With projections indicating a significant increase in uranium demand by 2026, domestic mine production is failing to meet reactor requirements, leading to a structural supply deficit that heightens investor focus on resource control.
- Merger Progress: The merger between Spring Valley Acquisition Corp. II and Eagle Energy Metals is advancing, with the SEC declaring its registration statement effective, and a shareholder vote scheduled for February 23, 2026, marking a critical step towards NASDAQ listing.
- Technological Investment: Eagle Energy Metals is collaborating with BBA USA Inc. to design a drilling campaign at the Aurora uranium project to support a Pre-Feasibility Study, which is expected to enhance its competitiveness in the U.S. uranium market to meet rising nuclear energy demands.
See More
Eagle Energy Metals Corp Merger Progress
- Nuclear Capacity Expansion: President Trump's signing of four executive orders aims to quadruple U.S. nuclear capacity over the next 25 years, addressing the increasing electricity demand driven by emerging technologies like AI and quantum computing that strain the grid.
- Merger Progress: The merger between Spring Valley Acquisition Corp. II and Eagle Energy Metals has received SEC registration approval, with a shareholder meeting scheduled for February 23, 2026, marking a significant step towards its NASDAQ listing.
- Uranium Supply Chain Investment: The U.S. Department of Energy's allocation of $2.7 billion to expand domestic uranium enrichment is expected to create thousands of jobs, further solidifying America's leadership in the global nuclear fuel supply chain.
- Mineral Resource Development: Eagle Energy Metals holds rights to a 32.75 million-pound uranium deposit on the Oregon-Nevada border and is collaborating with BBA USA Inc. on drilling activities to support its feasibility study, ensuring its asset can meet the growing uranium demand.
See More
Constellation Energy Stock Drops 32% Due to Regulatory Pressure
- Stock Decline: Constellation Energy's stock has fallen 32% since its October peak, currently trading below $290, indicating market concerns about its future earnings amid proposed regulatory caps on electricity rates.
- Auction Success: The company successfully cleared all capacity in the recent 2027-2028 auction, expected to generate revenue at a clearing price of $333.44 per megawatt-day, providing short-term financial stability for the firm.
- Long-Term Agreements: Constellation has signed long-term fixed-price power purchase agreements with major tech companies like Microsoft and Meta, which not only lock in revenue but also hedge against volatility in wholesale markets, showcasing its strategic flexibility in the energy sector.
- Competitive Market Pressure: Despite strong auction performance, regulatory measures could limit future profit potential, particularly in the highly competitive PJM market, where price caps may impact its profitability as a wholesale power producer.
See More
