Constellation Energy price target raised to $454 as AI data center deals drive demand
TD Cowen raised its price target to $454 from $440 on Constellation Energy, citing 2026 contracting growth and PJM changes from reliability backstop auctions and new non-firm tariffs. Q4 results beat forecasts as AI-driven data center demand led to deals with CyrusOne, Meta and Microsoft and 45,459 GWh nuclear output.
1. Analyst Raises Price Target
TD Cowen increased its price target on Constellation Energy to $454 from $440, maintaining a Buy rating. The upgrade reflects expectations of accelerating contracting activity in 2026 and PJM market enhancements including a reliability backstop auction and a new non-firm tariff structure to boost demand.
2. Q4 Earnings and Data Center Demand
In the fourth quarter, Constellation Energy reported adjusted profits above estimates driven by rising electricity demand from AI and crypto data centers and broader electrification. The company secured power agreements with CyrusOne for a new Texas data center, extended a Meta reactor operating deal in Illinois for 20 years, and agreed to restart a Microsoft-linked Pennsylvania reactor.
3. Calpine Acquisition and Nuclear Production
In January, Constellation completed its $16.4 billion acquisition of Calpine Corp., expanding natural gas and geothermal capacity and strengthening its generation portfolio. During Q4, its nuclear fleet produced 45,459 gigawatt-hours of electricity, a slight year-over-year decline due to planned refueling and maintenance outages.