BMO Capital Raises Constellation Energy's Price Target to $375 with Outperform Rating.

BMO Capital has raised its price target for Constellation Energy (CEG) to $375 with an Outperform rating, a 7.14% increase. This follows positive ratings from other analysts, including a 22.19% rise in price target from JP Morgan. The average brokerage recommendation for CEG is 2.1, indicating an Outperform status. The estimated GF Value for CEG in one year is $123.54, suggesting a downside of 62.85% from the current price.

BMO Capital has significantly raised its price target for Constellation Energy (CEG) to $375, representing a 7.14% increase. This move follows a string of positive analyst ratings, including a 22.19% rise in the price target from JP Morgan, and an average brokerage recommendation for CEG of 2.1, indicating an Outperform status. The estimated GF Value for CEG in one year is $123.54, suggesting a downside of 62.85% from the current price [1].

The price target increase comes on the heels of Constellation Energy's strong Q2 2025 earnings report. The company reported earnings per share (EPS) of $1.91, exceeding both BMO's expectations of $1.80 and the consensus estimate of $1.85. Constellation Energy also reaffirmed its full-year 2025 adjusted operating earnings guidance range of $8.90-9.60 per share, with a midpoint of $9.25, aligning with the current consensus estimate of $9.38 [1].

BMO Capital cited the upcoming closure of the Calpine transaction in the fourth quarter of 2025 and benefits to cash flow from provisions in the OBBBA as factors contributing to a materially higher free cash flow (FCFbG) outlook for Constellation Energy [1]. The company's robust financial performance, strong cash flows, and efficient nuclear power plants have been key factors in attracting favorable analyst ratings.

KeyBanc and Raymond James have also adjusted their price targets for CEG. KeyBanc raised its price target from $337 to $359, maintaining an Overweight rating, while Raymond James increased its price target to $393 from $391, keeping an Outperform rating [1].

Constellation Energy's strong Q2 2025 results highlighted its financial stability, with a debt level of around $6.7 billion, a cash position of over $2 billion, and revenue growth of 11.3%. The company's earnings per share (EPS) increased by 9.8% year-over-year, and net GAAP profits grew by 25.7% [2].

The company's valuation metrics, such as the Price/Earnings (P/E) ratio of 38.11 and the Price/Sales ratio of 4.39, indicate that the market is willing to pay a premium for Constellation Energy's growth potential and clean energy position. However, these high valuation metrics also suggest potential risks if growth slows down or if the market sentiment changes [2].

In conclusion, BMO Capital's price target increase for Constellation Energy reflects the company's strong financial performance and positive analyst sentiment. However, investors should carefully consider the company's high valuation and potential risks associated with its debt level and reliance on government subsidies.

References:
[1] https://ng.investing.com/news/analyst-ratings/constellation-energy-stock-price-target-raised-to-375-by-bmo-capital-93CH-2055781
[2] https://seekingalpha.com/article/4811991-constellations-nuclear-q2-results-clean-power-for-the-ai-and-esg-era