DBS analyst Elizabelle Pang maintained a Hold rating on Constellation Energy Corporation (CEG – Research Report) today and set a price target of $300.00.
Elizabelle Pang’s rating is based on a combination of factors that highlight both the potential and the risks associated with Constellation Energy Corporation’s current market position. The company’s recent announcement to acquire Calpine Corp is seen as a strategic move that could significantly enhance its scale and earnings from 2026 onwards, thanks to an attractive acquisition multiple. However, the exposure to natural gas prices remains a concern, which could impact future profitability.
Despite the positive outlook, Elizabelle Pang maintains a Hold rating due to the current high valuation of CEG’s stock, which is trading at a forward PE of 30x, significantly above its historical average. Additionally, potential risks such as extreme weather conditions affecting power prices, uncertainties in policy, and inflationary pressures on fuel expenses could pose challenges. Therefore, while the company’s prospects are promising, the recommendation suggests waiting for a more favorable entry point for investment.
In another report released on February 19, Citi also maintained a Hold rating on the stock with a $334.00 price target.