UBS Maintains Buy on Constellation Energy, Raises Price Target to $201
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2024
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Should l Buy CEG?
Source: Benzinga
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Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 412.82 USD with a low forecast of 350.00 USD and a high forecast of 520.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 250.460
Low
350.00
Averages
412.82
High
520.00
Current: 250.460
Low
350.00
Averages
412.82
High
520.00
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.
Nuclear Energy Market Resurgence and Investment Outlook
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- Nano Performance: Since its IPO in 2024, Nano Nuclear Energy's shares have skyrocketed nearly 600%, and despite a net loss of $40.1 million in 2025, its cash position improved to $203.3 million, indicating potential in the micro-reactor market.
- Constellation Diversification: As the largest nuclear power company in the U.S., Constellation generated $19.1 billion in revenue in the first nine months of 2025, a nearly 7% year-over-year increase, although its earnings per share fell by 34%, yet its diverse energy portfolio provides stability amid fluctuating nuclear demand.
- Investment Risks and Opportunities: While Nano's smaller market cap leads to higher volatility, its potential in emerging markets attracts investors; conversely, Constellation is viewed as a safer investment due to its stable revenue and growth track record.
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- Nuclear Market Growth: The rising demand for artificial intelligence is driving a resurgence in nuclear power, which currently accounts for nearly 20% of U.S. electricity generation, with the Trump administration advocating for further nuclear development, potentially creating new growth opportunities for related companies.
- Nano Overview: Founded in 2020 and going public in 2024, Nano Nuclear Energy specializes in micro reactors and portable nuclear batteries; despite having no revenue, it has improved its cash position to $203.3 million, indicating sustainability for the next few years.
- Constellation's Strength: As the largest nuclear energy company in the U.S., Constellation Energy reported $19.1 billion in revenue for the first nine months of 2025, a nearly 7% year-over-year increase, although its earnings per share fell by 34%, its diversified energy portfolio provides stable revenue sources.
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- Mixed Economic Data: The January ADP employment change rose by 22,000, falling short of the expected 45,000, while the ISM services index remained unchanged at 53.8, exceeding expectations, reflecting the complexities of economic recovery that may influence future monetary policy.
- Improved Market Sentiment: Market sentiment improved following President Trump's signing of a government funding deal, although the agreement only funds the Department of Homeland Security through February 13, highlighting ongoing uncertainties in government operations.
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- Surge in Electricity Demand: Goldman Sachs predicts that global electricity demand from data centers will increase by 165% from 2023 to 2030, primarily driven by the proliferation of artificial intelligence, presenting significant market opportunities for power suppliers.
- Nuclear Production Advantage: Constellation Energy operates 21 nuclear reactors, accounting for 86% of its output, making it the largest producer of carbon-free electricity in the U.S., with the capacity to quickly ramp up production, leading to accelerated revenue growth.
- Market Opportunities: The restart of the Three Mile Island nuclear plant will further enhance Constellation Energy's ability to supply electricity to meet the growing demand from AI data centers, positioning it as a major beneficiary in the evolving energy sector.
- Investment Appeal: Despite short-term noise from federal threats to cap electricity rates, the recent stock price adjustment presents a buying opportunity for investors, as the company's nuclear production potential is expected to drive sustained growth in the long term.
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- Surging Power Demand: Goldman Sachs predicts that global electricity demand from data centers will grow by 165% between 2023 and 2030, primarily driven by the ongoing proliferation of artificial intelligence, indicating a pressing need for power supply that will boost related companies' growth.
- Nuclear Production Advantage: Constellation Energy operates 21 nuclear reactors across 12 sites, accounting for 86% of its carbon-free electricity, with its nuclear production potential surpassing that of all other U.S. nuclear producers combined, showcasing its unique advantage in meeting future electricity demands.
- Accelerated Growth Expectations: With the restart of the Three Mile Island nuclear plant and the commissioning of other production projects, Constellation Energy's revenue is expected to accelerate, marking a significant enhancement of its competitiveness in the power market.
- Investment Opportunity: Despite facing threats from the federal government regarding electricity rate caps, the recent pullback in Constellation Energy's stock is viewed as short-term noise, presenting a favorable buying opportunity for investors, especially in the context of the energy sector's transformation.
See More
Soaring Nuclear Demand Boosts Constellation Energy's Outlook
- Surging Nuclear Demand: President Trump signed an executive order targeting 400 gigawatts of electricity production capacity by 2050, nearly quadrupling current levels, which drives significant investment interest in nuclear energy and indicates growth potential for decades ahead.
- Strengthened Leadership: Constellation Energy, as the largest producer of carbon-free energy in the U.S., boasts nuclear assets with a total capacity of 22.1 GW, more than double that of its nearest competitor, enabling it to better navigate regulatory challenges and execute new construction and upgrades.
- Strategic Partnerships: Constellation has secured long-term power supply agreements with Microsoft and Meta Platforms, sourcing electricity from its Three Mile Island and Clinton Clean Energy Center, showcasing its strong competitive position in the nuclear market and future revenue potential.
- Dividend Growth Potential: Although Constellation Energy's current dividend yield is just over 0.5%, analysts project a 15% annual growth in earnings per share over the next three to five years, suggesting that its dividend could grow at a double-digit rate, providing substantial income for long-term investors.
See More
Nuclear Energy Market Resurgence and Investment Outlook
- Nuclear Demand Surge: The resurgence of nuclear energy demand, driven by big tech and AI growth, is expected to push nuclear power's contribution to nearly 20% of total electricity generation in the U.S., creating new growth opportunities for related companies.
- Nano Performance: Since its IPO in 2024, Nano Nuclear Energy's shares have skyrocketed nearly 600%, and despite a net loss of $40.1 million in 2025, its cash position improved to $203.3 million, indicating potential in the micro-reactor market.
- Constellation Diversification: As the largest nuclear power company in the U.S., Constellation generated $19.1 billion in revenue in the first nine months of 2025, a nearly 7% year-over-year increase, although its earnings per share fell by 34%, yet its diverse energy portfolio provides stability amid fluctuating nuclear demand.
- Investment Risks and Opportunities: While Nano's smaller market cap leads to higher volatility, its potential in emerging markets attracts investors; conversely, Constellation is viewed as a safer investment due to its stable revenue and growth track record.
See More
Nuclear Power Resurgence Driven by Big Tech Demand
- Nuclear Market Growth: The rising demand for artificial intelligence is driving a resurgence in nuclear power, which currently accounts for nearly 20% of U.S. electricity generation, with the Trump administration advocating for further nuclear development, potentially creating new growth opportunities for related companies.
- Nano Overview: Founded in 2020 and going public in 2024, Nano Nuclear Energy specializes in micro reactors and portable nuclear batteries; despite having no revenue, it has improved its cash position to $203.3 million, indicating sustainability for the next few years.
- Constellation's Strength: As the largest nuclear energy company in the U.S., Constellation Energy reported $19.1 billion in revenue for the first nine months of 2025, a nearly 7% year-over-year increase, although its earnings per share fell by 34%, its diversified energy portfolio provides stable revenue sources.
- Investment Choice Analysis: While Nano's stock has surged over 595% in the past three years, its lack of profitability makes it riskier; in contrast, Constellation is viewed as a safer investment due to its stable revenue and diversified energy structure, appealing to investors seeking long-term growth.
See More
US Stocks Close Mixed: Nasdaq Hits Seven-Week Low
- Chipmaker Sell-off: Advanced Micro Devices (AMD) plunged over 17% after analysts issued a weak Q1 sales forecast, raising concerns about AI demand and pressuring the broader tech sector, particularly high-flying stocks.
- Super Micro Computer Surge: Super Micro Computer's stock rose more than 13% after forecasting Q3 net sales of at least $12.3 billion, significantly above the consensus estimate of $10.25 billion, indicating strong growth potential in a competitive market.
- Mixed Economic Data: The January ADP employment change rose by 22,000, falling short of the expected 45,000, while the ISM services index remained unchanged at 53.8, exceeding expectations, reflecting the complexities of economic recovery that may influence future monetary policy.
- Improved Market Sentiment: Market sentiment improved following President Trump's signing of a government funding deal, although the agreement only funds the Department of Homeland Security through February 13, highlighting ongoing uncertainties in government operations.
See More
Constellation Energy Positioned to Benefit from Surge in Electricity Demand
- Surge in Electricity Demand: Goldman Sachs predicts that global electricity demand from data centers will increase by 165% from 2023 to 2030, primarily driven by the proliferation of artificial intelligence, presenting significant market opportunities for power suppliers.
- Nuclear Production Advantage: Constellation Energy operates 21 nuclear reactors, accounting for 86% of its output, making it the largest producer of carbon-free electricity in the U.S., with the capacity to quickly ramp up production, leading to accelerated revenue growth.
- Market Opportunities: The restart of the Three Mile Island nuclear plant will further enhance Constellation Energy's ability to supply electricity to meet the growing demand from AI data centers, positioning it as a major beneficiary in the evolving energy sector.
- Investment Appeal: Despite short-term noise from federal threats to cap electricity rates, the recent stock price adjustment presents a buying opportunity for investors, as the company's nuclear production potential is expected to drive sustained growth in the long term.
See More
Opportunities in the Energy Sector Transformation
- Surging Power Demand: Goldman Sachs predicts that global electricity demand from data centers will grow by 165% between 2023 and 2030, primarily driven by the ongoing proliferation of artificial intelligence, indicating a pressing need for power supply that will boost related companies' growth.
- Nuclear Production Advantage: Constellation Energy operates 21 nuclear reactors across 12 sites, accounting for 86% of its carbon-free electricity, with its nuclear production potential surpassing that of all other U.S. nuclear producers combined, showcasing its unique advantage in meeting future electricity demands.
- Accelerated Growth Expectations: With the restart of the Three Mile Island nuclear plant and the commissioning of other production projects, Constellation Energy's revenue is expected to accelerate, marking a significant enhancement of its competitiveness in the power market.
- Investment Opportunity: Despite facing threats from the federal government regarding electricity rate caps, the recent pullback in Constellation Energy's stock is viewed as short-term noise, presenting a favorable buying opportunity for investors, especially in the context of the energy sector's transformation.
See More
Soaring Nuclear Demand Boosts Constellation Energy's Outlook
- Surging Nuclear Demand: President Trump signed an executive order targeting 400 gigawatts of electricity production capacity by 2050, nearly quadrupling current levels, which drives significant investment interest in nuclear energy and indicates growth potential for decades ahead.
- Strengthened Leadership: Constellation Energy, as the largest producer of carbon-free energy in the U.S., boasts nuclear assets with a total capacity of 22.1 GW, more than double that of its nearest competitor, enabling it to better navigate regulatory challenges and execute new construction and upgrades.
- Strategic Partnerships: Constellation has secured long-term power supply agreements with Microsoft and Meta Platforms, sourcing electricity from its Three Mile Island and Clinton Clean Energy Center, showcasing its strong competitive position in the nuclear market and future revenue potential.
- Dividend Growth Potential: Although Constellation Energy's current dividend yield is just over 0.5%, analysts project a 15% annual growth in earnings per share over the next three to five years, suggesting that its dividend could grow at a double-digit rate, providing substantial income for long-term investors.
See More
