Constellation Energy (CEG) Positioned for Growth as PJM Market Developments Support Demand

Constellation Energy Corporation (NASDAQ:CEG) is included among the

On February 27, TD Cowen raised its price recommendation on Constellation Energy Corporation (NASDAQ:CEG) to $454 from $440. The firm reiterated a Buy rating on the shares. The firm said that while the company’s guidance remains strong, it expects contracting activity to accelerate in 2026. The analyst also pointed to positive developments in the PJM market. These include the reliability backstop auction and the new non-firm tariff structure. The firm said these changes could bring more electricity demand online than previously expected.

On February 24, Constellation reported fourth-quarter adjusted profit that exceeded Wall Street estimates. The results were supported by rising electricity demand, particularly from data centers. Much of this increase has been driven by AI and crypto data center expansion, along with broader electrification trends across homes and businesses. The company recently signed an agreement with CyrusOne to connect and serve a new data center near the Freestone Energy Center in Texas. It also reached agreements with Meta to keep one of its nuclear reactors in Illinois operating for another 20 years. In addition, Constellation signed a deal with Microsoft to restart a nuclear reactor at a Pennsylvania facility formerly known as Three Mile Island.

Constellation’s nuclear fleet produced 45,459 gigawatt-hours of electricity during the period, slightly down from 45,494 gigawatt-hours a year earlier. The decline was due to an increase in planned refueling and maintenance outages. In January, the company completed its $16.4 billion acquisition of Calpine Corp., a natural gas and geothermal energy provider. The deal expands Constellation’s generation portfolio and strengthens its position in the energy market.

Constellation Energy Corporation (NASDAQ:CEG) produces emissions-free energy and supplies power to businesses, homes, and public sector customers across the United States. Its nuclear, hydro, wind, and solar facilities have the capacity to power about 16 million homes and account for roughly 10% of the nation’s clean energy generation.