11 Best Utility Stocks to Invest in According to Hedge Funds

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2. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Investors: 91

Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, with over 32.4 GW of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets.

Constellation Energy Corporation (NASDAQ:CEG) received a boost on December 17 when UBS raised its price target on the stock from $385 to $420, while keeping a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 16% from the current share price.

However, a day earlier, JPMorgan lowered its price target on Constellation Energy Corporation (NASDAQ:CEG) from $422 to $410, but maintained an ‘Overweight’ rating on the shares. The adjustment comes as the analyst firm updated its model post the third-quarter report.

Constellation Energy Corporation (NASDAQ:CEG) announced earlier this month that it had reached an agreement with the U.S. Department of Justice on the conditions required to complete its previously announced acquisition of Calpine Corporation, marking a significant step forward for the company. One of the largest blockbuster deals in American power industry history, the $16.4 billion acquisition is expected to add $2 billion to Constellation’s free cash flow annually.

The deal will also add significantly to Constellation Energy Corporation (NASDAQ:CEG)’s nuclear energy portfolio, which is especially important in the current AI landscape, where we have multiple hyperscalers signing nuclear energy deals with utilities to power their data centers.

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