Analyst Sees More Upside for Constellation Energy (CEG) After Strong YTD Rally

Constellation Energy Corporation (NASDAQ:CEG) is one of the AI Stocks Analysts Are Watching Closely. On August 11, Raymond James analyst J.R. Weston raised the price target on the stock to $393.00 (from $391.00) while maintaining an Outperform rating.

Raymond James rating affirmation is a reflection of Constellation’s market leadership as the nation’s largest clean energy producer, largest nuclear fleet operator, and largest commercial-industrial retail book holder.

The company is also involved in two of the three nuclear data center deals announced to date, exemplifying its robust base business even without new deals. Two factors will be fueling Constellation’s double-digit EPS growth through 2030.

“The company expects double-digit EPS growth through 2030, fueled by its nuclear fleet and surging clean energy demand. Closure and integration of private merchant generator Calpine (recently approved by both FERC and Texas regulators) will provide a catalyst stream, enhancing this low-capex story with major financial optionality through buybacks. In a high-flying subsector, CEG’s +45% YTD performance and +177% gains since January 2024 reflect its premium valuation as an established nuclear leader. We maintain our Outperform rating.”

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.

While we acknowledge the potential of CEG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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