Constellation Energy: Raymond James maintains Outperform, PT raised to $393 from $391.

Constellation Energy: Raymond James maintains Outperform, PT raised to $393 from $391.

Constellation Energy Corporation (NASDAQ: CEG) has received a positive outlook from Raymond James, who has raised its price target on the stock to $393 from $391. The analyst firm maintains an Outperform rating on the company [1].

The upgrade follows Constellation Energy's strong second-quarter 2025 results, which came in slightly ahead of consensus expectations. The company reported a 11.3% year-over-year (YoY) increase in revenue to $6.1 billion, with adjusted earnings per share (EPS) of $1.91, surpassing analysts' estimates. Net income was $645 million, up 25.7% from the same period last year [1].

Raymond James highlighted several key factors contributing to the positive outlook. The company's strong financial health, with a cash position of over $2 billion and positive free cash flow, was noted as a significant advantage. Additionally, Constellation Energy's ability to balance long-term supply contracts and market prices, ensuring stable revenue and the ability to exploit price jumps, was praised. The company's nuclear power plants operated at an efficiency of 94%, one of the highest in the sector [1].

KeyBanc, another investment firm, recently raised its price target on Constellation Energy to $359 from $337, citing strong momentum and the company's position in the expanding data economy [2]. This suggests that there is broad consensus among analysts on the potential of Constellation Energy.

However, investors should be aware of the risks associated with the company. Constellation Energy's debt level, while manageable, is higher than that of competitors, and the company's valuation is considered expensive compared to its peers. The company's revenue is also subject to fluctuations in the wholesale market pricing, which could be impacted by economic slowdowns or recessions [1].

In summary, Raymond James' positive outlook on Constellation Energy is supported by the company's strong financial performance and strategic positioning in the clean energy sector. However, investors should be mindful of the valuation and market risks.

References:
[1] https://seekingalpha.com/article/4811991-constellations-nuclear-q2-results-clean-power-for-the-ai-and-esg-era
[2] https://ca.investing.com/news/analyst-ratings/constellation-energy-stock-price-target-raised-to-359-from-337-at-keybanc-93CH-4147518