Is Constellation Energy (CEG) Too Pricey After Its Data Center Surge?

Constellation Energy Corporation (NASDAQ:CEG) is one of the Exciting AI Stocks to Watch Right NowOn September 8, Jefferies analyst Paul Zimbardo raised the price target on the stock to $347.00 (from $293.00) while maintaining a Hold rating.

According to Zimbardo, Constellation and other Independent Power Producers have lost steam since early August earnings with no or disappointing deal announcements. However, this is still up about 90% from early April lows.

Particularly for CEG, the analyst noted that since the stock already looks expensive as it bakes in future data center awards, the firm is staying cautious with a hold rating.

“Maintain Hold with CEG pricing in more than its peers but better profile after relative weakness. CEG prices in ~$142/sh data center value (~47% of stock price). We now assume 75% for ‘eligible’ nuclear portfolio (ex NY) or 13GW at $88/MWh and remaining 5GWs at $80/MWh + Clinton/Crane PPAs. Despite a meaningful increase in our PT, CEG is relatively pricey, embedding a very significant ‘market share’ of future data center awards.”

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

While we acknowledge the risk and potential of CEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CEG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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