BMO Capital has recently adjusted its price target for Constellation Energy Corporation (NASDAQ:CEG) from $291 to $337, maintaining an Outperform rating on the company’s shares. Constellation Energy, a significant player in the electricity market in the United States, has seen its importance rise with the expansion of AI data centers, contributing to its strong performance as one of the best stocks in the S&P 500 in recent months.
In a research note, analysts pointed out that Constellation’s first-quarter earnings were in line with expectations, with earnings per share reported at $2.14 and revenue reaching $6.69 billion—an increase of over 8% compared to the same quarter last year. A key highlight from the management’s discussion was the progress toward establishing long-term agreements with customers for their carbon-free energy supply, underscoring the company’s commitment to sustainable energy solutions.
Moreover, Constellation reaffirmed its full-year 2025 Adjusted Operating Earnings guidance range between $8.90 and $9.60 per share, signaling confidence in its ongoing operations and growth trajectory.
While the potential for Constellation Energy is evident, analysts have noted that some AI-related stocks may offer higher return prospects with reduced risk. In this evolving market, it’s essential for investors to consider a diverse portfolio that balances established utility firms like Constellation Energy with innovative AI technologies.
Overall, Constellation Energy’s focus on sustainability and its strong financial performance position it well in the rapidly changing energy landscape, providing optimism for its future growth.