Constellation Energy Corporation: Jefferies Maintains Hold Rating with $293 Price Target

Jefferies analyst Paul Zimbardo maintains a Hold rating for Constellation Energy Corporation with a price target of $293.00. The company's shares closed at $327.35. Zimbardo has a 3-star analyst rating with a 4.1% average return and a 53.33% success rate. Mizuho Securities also maintains a Hold rating, while Bank of America Securities reiterated a Buy rating.

In a significant move, Jefferies analyst Paul Zimbardo has raised the price target for Constellation Energy Corporation (CEG) to $293.00, up from $223.00, while maintaining a Hold rating. This update comes amidst a period of strong financial performance and strategic acquisitions for the company. As of July 2, 2025, CEG's shares closed at $327.35, indicating a 5.68% increase from the previous day's close.

Zimbardo's updated analysis reflects a significant increase in the implied data center value for CEG, which Jefferies estimates now accounts for approximately $95 per share, or about 30% of the current stock price. This valuation increase is attributed to the company's nuclear portfolio and recent regulatory approvals for its acquisition of Calpine Corporation. The merger, which combines CEG's nuclear fleet with Calpine's natural gas and geothermal assets, is expected to boost the company's adjusted operating earnings by over 20% in 2026 and $2.00/share through 2029 [1].

In addition to the acquisition, CEG has secured a 20-year, 1.1 GW virtual power purchase agreement (PPA) with Meta, which will supply carbon-free power from its Clinton Plant starting in 2027. This deal locks in premium pricing of $80–90/MWh, significantly above current market rates, and highlights nuclear energy's value for AI data centers requiring uninterrupted power [2].

Despite the substantial price target increase, Jefferies continues to view CEG shares as "relatively pricey" compared to industry peers. The firm noted that the current share price embeds "a very significant ’market share’ of future data center awards," suggesting the stock may already be pricing in considerable future growth opportunities.

Mizuho Securities also maintains a Hold rating for CEG, while Bank of America Securities reiterated a Buy rating. These ratings reflect the positive outlook on the company's strategic growth and financial adjustments, including its $1 billion share buyback program [1].

Constellation Energy's stock has surged 45% since March 2025, trading at a P/E of 22.8, but its robust balance sheet and strong financial performance suggest room for further upside. The company's adjusted operating earnings grew 17.6% to $2.14/share in Q1 2025, and it reaffirmed its $8.90–$9.60/share full-year guidance.

In conclusion, Jefferies' updated price target for CEG reflects the company's strong financial performance, strategic acquisitions, and growing importance in the AI-driven energy landscape. While the stock may be relatively pricey compared to industry peers, its robust balance sheet and clear growth opportunities make it an attractive investment for long-term energy portfolios.

References:
[1] https://ca.investing.com/news/analyst-ratings/jefferies-raises-constellation-energy-stock-price-target-to-293-from-223-93CH-4116396
[2] https://www.ainvest.com/news/harnessing-ai-driven-energy-revolution-strategic-entry-points-argan-constellation-energy-doordash-2507/