Wells Fargo Cuts Constellation Energy Price Target to $460, Stock Drops 4%
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Price Target Cut: Wells Fargo analyst Shahriar Pourreza lowered the price target for Constellation Energy from $478 to $460 while maintaining a buy rating, leading to a 4% drop in the stock price on the same day due to market reactions.
- Market Reaction: Following the price target reduction, investors sold off shares, indicating concerns about future profitability, particularly in light of new policies that may impact energy prices.
- Policy Impact: The Trump administration recently announced a push to enhance power generation capacity in the Mid-Atlantic region, with plans to invest over $15 billion to lower energy prices, which could negatively affect Constellation's earnings outlook.
- Acquisition Pressure: Constellation has just completed a $26.6 billion acquisition of Calpine, assuming approximately $12.7 billion in debt, and the new policy environment may exacerbate its financial pressures, influencing future investment decisions.
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: 307.710
Low
350.00
Averages
412.82
High
520.00
Current: 307.710
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 27 million homes, providing about 10% of the nation’s clean energy. 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, commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. It operates approximately 55 gigawatts of capacity from nuclear, natural gas, geothermal, hydro, wind and solar facilities.
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.
