Update shared on24 Sep 2025
Fair value Increased 1.18%Consensus analyst price targets for Constellation Energy were raised to $355.25, with robust electricity demand, strong cash flow, accelerating AI-driven power needs, and anticipated growth from the Calpine acquisition cited as key drivers, partially offset by valuation concerns, resulting in a modest upward revision in fair value.
Analyst Commentary
- Bullish analysts highlight robust electricity demand growth and strong cash flow generation as key drivers supporting the industry and Constellation’s leadership position.
- The acceleration of AI adoption has materially increased power demand, positioning independent power producers like Constellation as early winners in a transformative “Power revolution.”
- Recent adjusted Q2 results showed 14% year-over-year earnings growth, providing fundamental support for upward price target revisions.
- Anticipated growth through the planned acquisition of Calpine further supports analysts’ positive outlook on future earnings and scale.
- Some Bearish analysts express caution over relative valuation concerns and prefer IPP peers that do not require securing major hyperscaler contracts to justify risk-adjusted returns.
What's in the News
- All 21 of Constellation Energy's nuclear reactors operated at a 98.8% capacity factor during the summer, demonstrating exceptional reliability and outperformance versus industry averages through ongoing investment and maintenance.
- The company is investing further to increase output from existing nuclear plants and plans to restart the Crane Clean Energy Center, potentially adding up to 2,000 MW of additional clean baseload capacity.
- Constellation repurchased 1,099,580 shares for $404 million in Q2 2025, bringing total buybacks under the current authorization to 17,179,145 shares (5.36% of shares outstanding).
- The company was dropped from multiple Russell growth indices, including the Russell 3000 Growth, Russell 1000 Growth, Russell 3000E Growth, and Russell Top 200 Growth indices.
Valuation Changes
Summary of Valuation Changes for Constellation Energy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $351.10 to $355.25.
- The Consensus Revenue Growth forecasts for Constellation Energy has significantly risen from 2.5% per annum to 6.5% per annum.
- The Future P/E for Constellation Energy has significantly fallen from 37.16x to 27.20x.
Disclaimer
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