Hyperscaler Deals Could Power Constellation Energy (CEG) Stock Higher

Constellation Energy Corporation (NASDAQ:CEG) is one of the  AI Stocks Investors Are Watching Closely. On August 12, Mizuho analyst Paul Fremont raised the price target on the stock to $335.00 (from $325.00) while maintaining a Neutral rating.

The price target raise follows Constellation’s second-quarter earnings, where it reported adjusted earnings per share of $1.91, exceeding the consensus estimate of $1.85. The company also reaffirmed its full-year guidance range of $8.90-$9.60.

Mizuho noted how Constellation has accelerated the timeline for restarting the Crane Energy Center, and that hyperscaler contracts have become a part of normal business that is helping the company repurchase shares in the market as it works on new deals.

A data analyst at their desk, using the company’s back-end infrastructure to uncover insights.

Constellation’s next hyperscaler deal announcement also appears to be “imminent”.

“CEG executed a $400m accelerated share repurchase, buying back $2.4B so far under its current authorization. The next hyperscaler deal announcement appears imminent, as management noted significant progress has been made with a counterparty. Separately, CEG continues to see strong interest from a growing number of entities, and is in the early- to mid-innings with other opportunities. We remain Neutral-rated on CEG and raise our PT to $335 (from $325) on current multiples.”

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.

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Disclosure: None.