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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Constellation Energy Corporation

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $1 to $354, 30.0x our next-12-month EPS estimate of $11.79, reflecting the highest valuation multiple in our Utility sector coverage as we see CEG as one of the top beneficiaries of data-center-driven power demand growth. Our premium valuation is further supported by our expectations of EPS to grow at a 22.5% CAGR from 2025-2028, far exceeding the peer average of 8.0%. We keep our 2026 EPS view unchanged at $11.77 and trim our 2027 EPS view by $0.03 to $13.67. Regarding PJM regulatory uncertainty (reliability backstop procurement), management expects PJM to file a proposal at FERC by June, bilateral contracting beginning September, and central procurement by March 2027, with full clarity expected by year-end 2026, a pace described as "faster than we had hoped" that addresses the vagueness noted at the March investor event. The powered land strategy remains attractive, with 780 MW signed and an additional 380 MW Phase 2 expansion.

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