Key Stats for CEG Stock
- Past-30-Day Performance: 21%
- 52-Week Range: $161 to $413
- Valuation Model Target Price: $500
- Implied Upside: 54%
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What Happened?
Constellation Energy Corporation stock has risen about 21% over the past 30 days, finishing near $325 per share as investors reacted to strong earnings results, bullish analyst commentary, and growing expectations that AI-driven electricity demand could significantly increase power consumption over the next several years.
Much of the recent rally followed positive analyst updates highlighting the company’s positioning to benefit from rising data center electricity demand.
On February 27, TD Cowen raised its price target on Constellation Energy to $454 from $440 and reiterated a Buy rating, noting that contracting activity could accelerate in 2026.
The firm also pointed to improving conditions in the PJM power market, including the reliability backstop auction and a new non-firm tariff structure that could bring more electricity demand online than previously expected.
This week, Constellation also reported fourth-quarter adjusted EPS of $2.30, beating analyst estimates of $2.23, while revenue rose to $6.07 billion from $5.38 billion a year earlier as electricity demand increased, particularly from AI-driven data centers.
CEO Joe Dominguez said “With the nation’s largest nuclear fleet at the core of our strategy, we’re pairing the grid’s most reliable power with flexible resources to meet accelerating demand driven by electrification and the data economy.”
Recent developments also highlight how data center demand is shaping the company’s growth outlook.
Constellation signed an agreement with CyrusOne to power a new Texas data center and previously reached agreements with Meta to keep a nuclear reactor in Illinois operating for another 20 years and with Microsoft to restart a reactor at a Pennsylvania facility formerly known as Three Mile Island.
The company also completed its $16.4 billion acquisition of Calpine in January, expanding its natural gas and geothermal generation portfolio as electricity demand tied to AI infrastructure continues rising.
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Is CEG Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 9.7%
- Operating Margins: 20.6%
- Exit P/E Multiple: 25.6x
Constellation Energy’s long-term outlook is increasingly tied to structural growth in electricity demand as artificial intelligence infrastructure, electrification, and large-scale data centers require significantly more reliable power generation.
The company operates the largest nuclear fleet in the United States, which provides steady carbon-free electricity that hyperscale technology companies increasingly seek through long-term power agreements.
As more AI infrastructure is built, these agreements can lock in predictable revenue while strengthening pricing power across power markets.
Another important driver is the operating leverage of nuclear generation. Production costs remain relatively stable, meaning higher wholesale electricity prices can translate directly into stronger margins and cash flow as demand for reliable power tightens supply across regional grids.
Constellation is also expanding its generation portfolio through the $16.4 billion Calpine acquisition, which adds natural gas and geothermal assets that can support flexible power generation alongside its nuclear fleet as electricity demand rises.
Based on these inputs, the valuation model estimates a target price of about $500, implying roughly 54% total upside over the next 2.8 years, suggesting the stock appears undervalued if electricity demand tied to AI infrastructure and electrification continues expanding.
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How Much Upside Does CEG Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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