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Constellation Energy’s Near-Term Caution Collides With Bullish Long-Run Calls

Analysts point to data center demand as a durable driver of earnings power.

Overview

  • Following an early April update, Barclays on April 6 raised its price target to $360 and kept an Overweight rating, saying it still sees a conservative path to $19 a share in earnings by 2029.
  • BMO lowered its target to $368 and kept an Outperform rating after the update, citing fewer new large-load contracts and an implied 2029 earnings range below prior expectations.
  • Constellation reaffirmed 2026 earnings guidance of $11 to $12 a share that many investors viewed as cautious, and the stock is down more than 20% so far this year.
  • Ahead of first-quarter results, analysts expect profit of $2.56 per share, which would be about 20% higher than a year earlier.
  • The company’s scale after buying Calpine and a 20-year Microsoft power deal for the Crane plant position it for data center demand, even as the Crane restart is held up by power line delays.