Constellation Energy (CEG) Price Target Raised to $420

Constellation Energy Corporation (NASDAQ:CEG) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.

Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, with over 32.4 GW of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets.

Constellation Energy Corporation (NASDAQ:CEG) received a boost on December 17 when UBS raised its price target on the stock from $385 to $420, while keeping a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 16% from the current share price.

However, a day earlier, JPMorgan lowered its price target on Constellation Energy Corporation (NASDAQ:CEG) from $422 to $410, but maintained an ‘Overweight’ rating on the shares. The adjustment comes as the analyst firm updated its model post the third-quarter report.

Constellation Energy Corporation (NASDAQ:CEG) announced earlier this month that it had reached an agreement with the U.S. Department of Justice on the conditions required to complete its previously announced acquisition of Calpine Corporation, marking a significant step forward for the company. One of the largest blockbuster deals in American power industry history, the $16.4 billion acquisition is expected to add $2 billion to Constellation’s free cash flow annually.

The deal will also add significantly to Constellation Energy Corporation (NASDAQ:CEG)’s nuclear energy portfolio, which is especially important in the current AI landscape, where we have multiple hyperscalers signing nuclear energy deals with utilities to power their data centers.

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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Disclosure: None.