Constellation Energy Stock Surges 16.50% in Third Consecutive Day of Gains, Trading Volume Ranks 98th

On April 9, 2025, Constellation Energy (CEG) saw a significant surge, with its stock price rising by 16.50% and marking its third consecutive day of gains, accumulating a total increase of 26.02% over the past three days. The trading volume for the day was substantial, reaching 16.35 billion, placing it at the 98th position in terms of daily trading volume.

Citigroup's recent upgrade of Constellation Energy to a "Buy" rating, with a price target of $232, has provided a notable boost to the company's stock. This upgrade comes after a significant decline in the stock's value earlier this year, with Citigroup analyst Ryan Levine highlighting the current valuation as compelling. Levine pointed out that the company's assets, including about 1 gigawatt in uprates and 1.2 gigawatts from existing operations, could support co-location demand driven by artificial intelligence, offering meaningful upside if demand materializes.

In addition to the potential growth from AI-related demand, Citigroup also flagged new natural gas projects in Texas as a source of future growth. Production tax credits are expected to help cushion the company from swings in power prices, further strengthening its outlook. Levine noted that the $232 target is achievable under current conditions, without assuming new policy changes or unexpected growth. Any future AI-related policies or additional partnerships could further enhance Constellation's prospects.

Constellation Energy is also in the process of acquiring natural gas power giant Calpine for $26.6 billion, pending approval, with the deal expected to close by January 2026. This acquisition is seen as a strategic move to expand the company's portfolio and enhance its growth opportunities. Additionally, Constellation Energy Corporation has announced the signing of a 20-year power purchase agreement, which is expected to grow its yield by another 10% in 2025.