Evercore ISI's Coverage Resumption#

Evercore ISI has restarted its coverage of Constellation Energy (NASDAQ: CEG) with an outperform rating, suggesting that the stock is expected to perform better than the market average. They have set a price target of $380, which aligns with the general consensus among analysts, who have price targets ranging from $272 to $481.

Recent Acquisition and Company Overview#

This renewed coverage comes after Constellation Energy completed its significant $26.6 billion acquisition of Calpine on January 7, 2026. The newly combined company boasts a capacity of about 55 gigawatts, utilizing various energy sources such as nuclear, natural gas, and renewable options like wind and solar. Constellation serves around 2.5 million retail accounts, including many major corporations in the Fortune 100, and is estimated to produce about 10% of the clean energy in the United States.

Growth Prospects and Analyst Sentiment#

Evercore ISI believes that Constellation Energy is well-positioned to benefit from growth opportunities related to artificial intelligence, data center expansions, and the electrification of various sectors. However, the timing and extent of this growth depend on contract negotiations and regulatory policies. Analysts are optimistic, forecasting a 31% revenue growth for fiscal 2026. Despite this, some analyses suggest that the stock may be overvalued compared to its fair value estimate.

Mixed Reactions from Other Analysts#

In recent updates, various financial firms have adjusted their price targets for Constellation Energy. BMO Capital reduced its target from $410 to $386 while maintaining an outperform rating, citing a need for more substantial long-term contracts. KeyBanc lowered its target from $417 to $321 due to complexities in the company's outlook. Conversely, Barclays slightly increased its target from $356 to $360, despite noting that the company's recent investor update did not meet expectations. Mizuho and UBS also lowered their targets, reflecting a mixed sentiment among analysts regarding the company's future.