HSBC Starts Constellation Energy (CEG) at Buy

HSBC analyst Meike Becker initiates coverage on Constellation Energy (NASDAQ: CEG) with a Buy rating and a price target of $335.00.

The analyst comments: “Constellation is part of our generator theme and we rate the stock Buy on 2026-30e EBITDA CAGR of 11% (2030-35e EBITDA CAGR of 1%) and 2026-30e EPS CAGR of 19% (2030-35e EPS CAGR of 4%) above peer average. We forecast USD14bn of share buybacks in the next five years. We forecast adjusted TSR for FY26-32e of 15%; our as well as consensus EPS estimates are above the top end of the company implied 2029 EPS guidance .

Constellation is an independent power producer operating in multiple regions and has recently expanded its business via the acquisition of Calpine. It has the largest fleets of nuclear, natural gas and geothermal generation in the US. We estimate two-third of earnings coming from PJM and nuclear fleet. We forecast Constellation’s capex to rise to cUS4.6bn per annum by 2030e from USD2.5bn in 2025 on upgrades and new builds.”

For an analyst ratings summary and ratings history on Constellation Energy click here. For more ratings news on Constellation Energy click here.

Shares of Constellation Energy closed at $270.74 yesterday.

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