The stock of Constellation Energy (CEG) has been upgraded by Citigroup Research (C), which highlighted the future opportunities the company has related to nuclear power.
Ryan Levine, a top four-star rated analyst at Citi, upgraded CEG stock to Buy from neutral previously, but lowered his price target on the stock to $232 from $334. Constellation Energy’s stock gained 16% on April 9 on news of the upgrade and as U.S. President Donald Trump announced plans to ease off his trade tariffs.
Levine said in a note to clients that CEG stock offers an attractive risk/reward dynamic amid the current market volatility caused by President Trump’s global trade tariffs. Even in an economic recession, Levine says that Constellation Energy should benefit from the fact that it is the largest producer of carbon-free energy in America.
AI-Driven Growth
Citigroup also thinks Constellation Energy will grow substantially as demand for its clean energy grows alongside artificial intelligence (AI) data centers that consume vast amounts of power. Levine added that the new price target takes into account Constellation Energy’s pending acquisition of Calpine Power in a cash-and-stock deal worth $16.40 billion.
Despite the gains achieved on April 9, Constellation Energy’s stock is still down 38% from a record close of $347.44 reached in late January of this year. Before Trump’s tariff drama, nuclear stocks were hit on news that technology giant Microsoft (MSFT) had canceled several data center leases, and on concerns that demand for AI technologies is waning.
Is CEG Stock a Buy?
The stock of Constellation Energy has a consensus Moderate Buy rating among 12 Wall Street analysts. That rating is based on six Buy and six Hold recommendations assigned in the last three months. The average CEG price target of $315 implies 45.93% upside from current levels.
