Constellation Energy named 2025 ‘Best Idea’ in utilities at Guggenheim

Guggenheim analyst Shahriar Pourreza named Constellation Energy (CEG) as the analyst’s 2025 “Best Idea” in the utilities sector, mainly coming off the company’s “surprise” acquisition of Calpine. “If you have to own one name in ’25, it’s CEG,” the analyst tells investors. Concurrently, the analyst is removing Vistra (VST) from the firm’s “Best Idea List,” but retains a Buy rating on the shares. On the group more generally, the firm shuffled ratings, arguing that the group is “oversold, undervalued” and should outperform in 2025. In its ratings reworking, the firm upgraded six stocks to Buy and downgraded four to Neutral, adding that utilities are “not an interest rate call, not a yield call… it’s a GARP call,” describing the sector as offering “growth at a reasonable price.” Guggenheim has a Buy rating and $378 price target on Constellation shares.